The WACC of Gulf West Security Network Inc (GWSN) is 3.9%.
| Range | Selected | |
| Cost of equity | 3.10% - 363,846.00% | 181,924.55% |
| Tax rate | 26.20% - 27.00% | 26.60% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 3.7% - 4.0% | 3.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | -1239.83 | 63953.32 |
| Additional risk adjustments | 5702.5% | 5703.0% |
| Cost of equity | 3.10% | 363,846.00% |
| Tax rate | 26.20% | 27.00% |
| Debt/Equity ratio | 937720 | 937720 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 3.7% | 4.0% |
| Selected WACC | 3.9% | |
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 GWSN:
cost_of_equity (181,924.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-1239.83) + risk_adjustments (5,702.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.