CORR WACC - Weighted Average Cost of Capital

The WACC of CorEnergy Infrastructure Trust Inc (CORR) is 12.6%.

The Cost of Equity of CorEnergy Infrastructure Trust Inc (CORR) is 65.75%.

The Cost of Debt of CorEnergy Infrastructure Trust Inc (CORR) is 13.15%.

	Range	Selected
Cost of equity	53.00% - 78.50%	65.75%
Tax rate	5.70% - 12.00%	8.85%
Cost of debt	6.40% - 19.90%	13.15%
WACC	6.8% - 18.4%	12.6%

WACC

CORR WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	10.68	13.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	53.00%	78.50%

Tax rate	5.70%	12.00%
Debt/Equity ratio	62.69	62.69
Cost of debt	6.40%	19.90%

After-tax WACC	6.8%	18.4%


Selected WACC	12.6%

CORR'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 CORR:

cost_of_equity (65.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (10.68) + 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.