CAWW
CCA Industries Inc
Price:  
0.87 
USD
Volume:  
8,470.00
United States | Personal Products
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CAWW WACC - Weighted Average Cost of Capital

The WACC of CCA Industries Inc (CAWW) is 7.1%.

The Cost of Equity of CCA Industries Inc (CAWW) is 7.05%.
The Cost of Debt of CCA Industries Inc (CAWW) is 12.25%.

Range Selected
Cost of equity 5.40% - 8.70% 7.05%
Tax rate 22.40% - 25.30% 23.85%
Cost of debt 7.00% - 17.50% 12.25%
WACC 5.4% - 8.8% 7.1%
WACC

CAWW WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.34 0.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 8.70%
Tax rate 22.40% 25.30%
Debt/Equity ratio 0.01 0.01
Cost of debt 7.00% 17.50%
After-tax WACC 5.4% 8.8%
Selected WACC 7.1%

CAWW'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 CAWW:

cost_of_equity (7.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.34) + 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.