CCJI.L WACC - Weighted Average Cost of Capital
The WACC of CC Japan Income and Growth Trust PLC (CCJI.L) is 10.0%.
| Range | Selected | |
| Cost of equity | 13.9% - 17.2% | 15.55% |
| Tax rate | 2.4% - 2.9% | 2.65% |
| Cost of debt | 4.6% - 4.6% | 4.6% |
| WACC | 9.2% - 10.8% | 10.0% |
| 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 | 13.9% | 17.2% |
| Tax rate | 2.4% | 2.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.6% | 4.6% |
| After-tax WACC | 9.2% | 10.8% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CCJI.L | CC Japan Income and Growth Trust PLC | 1.09 | 0.98 | 0.47 |
| BRFI.L | BlackRock Frontiers Investment Trust PLC | 0 | 1.03 | 1.03 |
| HOT.L | Henderson Opportunities Trust PLC | 0.08 | 1.63 | 1.51 |
| IVI.L | Invesco Income Growth Trust PLC | 0.04 | 1 | 0.96 |
| JUS.L | Jupiter US Smaller Companies PLC | 0.02 | 1.11 | 1.09 |
| MAJE.L | Majedie Investments PLC | 0.15 | 1.21 | 1.06 |
| NCYF.L | CQS New City High Yield Fund Ltd | 0.11 | 0.79 | 0.71 |
| SCF.L | Schroder Income Growth Fund PLC | 0.13 | 1.24 | 1.11 |
| SCP.L | Schroder UK Mid Cap Fund PLC | 0.12 | 1.73 | 1.55 |
| STS.L | Securities Trust Of Scotland PLC | 0.05 | 0.76 | 0.72 |
| TIGT.L | Troy Income & Growth Trust PLC | 0.02 | 0.68 | 0.67 |
| Low | High | |
| Unlevered beta | 0.96 | 1.06 |
| Relevered beta | 1.97 | 2.12 |
| Adjusted relevered beta | 1.65 | 1.75 |
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.