BIQIF
BIQI International Holdings Corp
Price:  
0.00 
USD
Volume:  
1,330.00
China | Food Products
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BIQIF WACC - Weighted Average Cost of Capital

The WACC of BIQI International Holdings Corp (BIQIF) is 5.1%.

The Cost of Equity of BIQI International Holdings Corp (BIQIF) is 188,958.80%.
The Cost of Debt of BIQI International Holdings Corp (BIQIF) is 5.70%.

Range Selected
Cost of equity 19,060.50% - 358,857.10% 188,958.80%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.40% - 7.00% 5.70%
WACC 3.3% - 6.8% 5.1%
WACC

BIQIF WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 4142.75 64080.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 19,060.50% 358,857.10%
Tax rate 26.20% 27.00%
Debt/Equity ratio 213616.15 213616.15
Cost of debt 4.40% 7.00%
After-tax WACC 3.3% 6.8%
Selected WACC 5.1%

BIQIF'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 BIQIF:

cost_of_equity (188,958.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (4142.75) + 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.