BKSC
Bank of South Carolina
Price:  
12 
USD
Volume:  
8,494
United States | Banks

BKSC WACC - Weighted Average Cost of Capital

The WACC of Bank of South Carolina (BKSC) is 7.5%.

The Cost of Equity of Bank of South Carolina (BKSC) is 11.25%.
The Cost of Debt of Bank of South Carolina (BKSC) is 5%.

RangeSelected
Cost of equity9.9% - 12.6%11.25%
Tax rate22.9% - 23.1%23%
Cost of debt5.0% - 5.0%5%
WACC6.9% - 8.2%7.5%
WACC

BKSC WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta1.31.38
Additional risk adjustments0.0%0.5%
Cost of equity9.9%12.6%
Tax rate22.9%23.1%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.9%8.2%
Selected WACC7.5%

BKSC'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 BKSC:

cost_of_equity (11.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.3) + 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.