BEPC WACC - Weighted Average Cost of Capital

The WACC of Brookfield Renewable Corp (BEPC) is 11.2%.

The Cost of Equity of Brookfield Renewable Corp (BEPC) is 6.70%.

The Cost of Debt of Brookfield Renewable Corp (BEPC) is 14.40%.

	Range	Selected
Cost of equity	5.30% - 8.10%	6.70%
Tax rate	7.50% - 12.80%	10.15%
Cost of debt	7.90% - 20.90%	14.40%
WACC	6.8% - 15.6%	11.2%

WACC

BEPC WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.32	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	8.10%

Tax rate	7.50%	12.80%
Debt/Equity ratio	2.85	2.85
Cost of debt	7.90%	20.90%

After-tax WACC	6.8%	15.6%


Selected WACC	11.2%

BEPC'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 BEPC:

cost_of_equity (6.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.32) + 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.