The WACC of Ifnw Dissolution Corp (INOW) is 8.9%.
Range | Selected | |
Cost of equity | 8.8% - 9442.7% | 4725.75% |
Tax rate | 26.2% - 27.0% | 26.6% |
Cost of debt | 12.0% - 12.0% | 12% |
WACC | 8.9% - 9.0% | 8.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.07 | 1685.33 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.8% | 9442.7% |
Tax rate | 26.2% | 27.0% |
Debt/Equity ratio | 46908.73 | 46908.73 |
Cost of debt | 12.0% | 12.0% |
After-tax WACC | 8.9% | 9.0% |
Selected WACC | 8.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
INOW | Ifnw Dissolution Corp | 46908.73 | -107.87 | 0 |
ADTM | Adaptive Medias Inc | 40.15 | 1.06 | 0.03 |
CBP.CN | Certive Solutions Inc | 4.84 | 1.89 | 0.42 |
CSYS | 123CSS Corp | 0.59 | 1.12 | 0.78 |
GTNM | Golden Time Network Marketing Ltd | 0 | -0.54 | -0.54 |
NERD.CN | Nerds On Site Inc | 0.16 | 0.72 | 0.65 |
YYYH | China Yanyuan Yuhui National Education Group Inc | 92893.02 | 0 | 0 |
Low | High | |
Unlevered beta | 0.01 | 0.26 |
Relevered beta | 1.1 | 2514.93 |
Adjusted relevered beta | 1.07 | 1685.33 |
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 INOW:
cost_of_equity (4,725.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.07) + 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.