BC.U.TO
Bespoke Capital Acquisition Corp
Price:  
12.75 
USD
Volume:  
15,220
United Kingdom | Finance and Insurance

BC.U.TO WACC - Weighted Average Cost of Capital

The WACC of Bespoke Capital Acquisition Corp (BC.U.TO) is 7.0%.

The Cost of Equity of Bespoke Capital Acquisition Corp (BC.U.TO) is 10.5%.
The Cost of Debt of Bespoke Capital Acquisition Corp (BC.U.TO) is 5%.

RangeSelected
Cost of equity9.1% - 11.9%10.5%
Tax rate24.6% - 36.9%30.75%
Cost of debt5.0% - 5.0%5%
WACC6.4% - 7.5%7.0%
WACC

BC.U.TO WACC calculation

CategoryLowHigh
Long-term bond rate3.4%3.9%
Equity market risk premium4.2%5.2%
Adjusted beta1.351.44
Additional risk adjustments0.0%0.5%
Cost of equity9.1%11.9%
Tax rate24.6%36.9%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.4%7.5%
Selected WACC7.0%

BC.U.TO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for BC.U.TO:

cost_of_equity (10.50%) = risk_free_rate (3.65%) + equity_risk_premium (4.70%) * adjusted_beta (1.35) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.