DE.V WACC - Weighted Average Cost of Capital

The WACC of Decisive Dividend Corp (DE.V) is 9.5%.

The Cost of Equity of Decisive Dividend Corp (DE.V) is 11.45%.

The Cost of Debt of Decisive Dividend Corp (DE.V) is 8.05%.

	Range	Selected
Cost of equity	9.60% - 13.30%	11.45%
Tax rate	28.70% - 32.80%	30.75%
Cost of debt	7.00% - 9.10%	8.05%
WACC	8.1% - 10.9%	9.5%

WACC

DE.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.13	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	13.30%

Tax rate	28.70%	32.80%
Debt/Equity ratio	0.5	0.5
Cost of debt	7.00%	9.10%

After-tax WACC	8.1%	10.9%


Selected WACC	9.5%

DE.V'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 DE.V:

cost_of_equity (11.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.13) + 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.