CDR WACC - Weighted Average Cost of Capital

The WACC of Cedar Realty Trust Inc (CDR) is 8.9%.

The Cost of Equity of Cedar Realty Trust Inc (CDR) is 9.85%.

The Cost of Debt of Cedar Realty Trust Inc (CDR) is 11.10%.

	Range	Selected
Cost of equity	8.50% - 11.20%	9.85%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	4.00% - 18.20%	11.10%
WACC	5.3% - 12.4%	8.9%

WACC

CDR WACC calculation

Category	Low	High

Long-term bond rate	4.2%	4.7%
Equity market risk premium	5.0%	6.0%
Adjusted beta	0.87	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.20%

Tax rate	26.20%	27.00%
Debt/Equity ratio	1.34	1.34
Cost of debt	4.00%	18.20%

After-tax WACC	5.3%	12.4%


Selected WACC	8.9%

CDR'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 CDR:

cost_of_equity (9.85%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.87) + 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.