DE.V WACC - Weighted Average Cost of Capital

The WACC of Decisive Dividend Corp (DE.V) is 9.3%.

The Cost of Equity of Decisive Dividend Corp (DE.V) is 10.40%.

The Cost of Debt of Decisive Dividend Corp (DE.V) is 10.75%.

	Range	Selected
Cost of equity	8.40% - 12.40%	10.40%
Tax rate	28.70% - 32.80%	30.75%
Cost of debt	9.10% - 12.40%	10.75%
WACC	7.7% - 10.9%	9.3%

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	0.88	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.40%	12.40%

Tax rate	28.70%	32.80%
Debt/Equity ratio	0.58	0.58
Cost of debt	9.10%	12.40%

After-tax WACC	7.7%	10.9%


Selected WACC	9.3%

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 (10.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.88) + 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.