BPFU.L WACC - Weighted Average Cost of Capital

The WACC of Blue Planet Financials Growth and Income Investment Trust PLC (BPFU.L) is .

The Cost of Equity of Blue Planet Financials Growth and Income Investment Trust PLC (BPFU.L) is .

The Cost of Debt of Blue Planet Financials Growth and Income Investment Trust PLC (BPFU.L) is .

	Range	Selected
Cost of equity	-
Tax rate	-
Cost of debt	-
WACC	-

WACC

BPFU.L WACC calculation

Category	Low	High

Long-term bond rate
Equity market risk premium
Adjusted beta

Additional risk adjustments
Cost of equity

Tax rate
Debt/Equity ratio
Cost of debt

After-tax WACC


Selected WACC

BPFU.L'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 BPFU.L:

cost_of_equity () = risk_free_rate () + equity_risk_premium () * adjusted_beta () + risk_adjustments ()

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