FGNV
Forge Innovation Development Corp
Price:  
0.10 
USD
Volume:  
7,080.00
United States | N/A
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FGNV WACC - Weighted Average Cost of Capital

The WACC of Forge Innovation Development Corp (FGNV) is 48.9%.

The Cost of Equity of Forge Innovation Development Corp (FGNV) is 5.90%.
The Cost of Debt of Forge Innovation Development Corp (FGNV) is 89.40%.

Range Selected
Cost of equity 5.20% - 6.60% 5.90%
Tax rate 0.20% - 0.40% 0.30%
Cost of debt 7.00% - 171.80% 89.40%
WACC 6.1% - 91.7% 48.9%
WACC

FGNV WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.29 0.31
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.20% 6.60%
Tax rate 0.20% 0.40%
Debt/Equity ratio 1.07 1.07
Cost of debt 7.00% 171.80%
After-tax WACC 6.1% 91.7%
Selected WACC 48.9%

FGNV'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 FGNV:

cost_of_equity (5.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.29) + 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.