IMCI WACC - Weighted Average Cost of Capital
The WACC of Infinite Group Inc (IMCI) is 5.9%.
| Range | Selected | |
| Cost of equity | 5925.9% - 36025.6% | 20975.75% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 7.0% - 7.6% | 7.3% |
| WACC | 5.3% - 6.5% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1287.39 | 6432.27 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5925.9% | 36025.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 38942.31 | 38942.31 |
| Cost of debt | 7.0% | 7.6% |
| After-tax WACC | 5.3% | 6.5% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IMCI | Infinite Group Inc | 38942.31 | 1.06 | 0 |
| EAXR | Ealixir Inc | 0.17 | -0.13 | -0.12 |
| ETEC | Emtec Inc | 9.09 | 0.91 | 0.12 |
| HCKT | Hackett Group Inc | 0.02 | 0.87 | 0.86 |
| III | Information Services Group Inc | 0.27 | 0.51 | 0.43 |
| NDVN | nDivision Inc | 3.93 | 1.08 | 0.28 |
| VISM | Visium Technologies Inc | 0.83 | 0.73 | 0.46 |
| Low | High | |
| Unlevered beta | 0.18 | 0.37 |
| Relevered beta | 1920.99 | 9599.91 |
| Adjusted relevered beta | 1287.39 | 6432.27 |
IMCI'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 IMCI:
cost_of_equity (20,975.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1287.39) + 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.