CCJI.L WACC - Weighted Average Cost of Capital

The WACC of CC Japan Income and Growth Trust PLC (CCJI.L) is 10.0%.

The Cost of Equity of CC Japan Income and Growth Trust PLC (CCJI.L) is 15.55%.

The Cost of Debt of CC Japan Income and Growth Trust PLC (CCJI.L) is 4.60%.

	Range	Selected
Cost of equity	13.90% - 17.20%	15.55%
Tax rate	2.40% - 2.90%	2.65%
Cost of debt	4.60% - 4.60%	4.60%
WACC	9.2% - 10.8%	10.0%

WACC

CCJI.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.65	1.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	17.20%

Tax rate	2.40%	2.90%
Debt/Equity ratio	1	1
Cost of debt	4.60%	4.60%

After-tax WACC	9.2%	10.8%


Selected WACC	10.0%

CCJI.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 CCJI.L:

cost_of_equity (15.55%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.65) + 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.