KODK WACC - Weighted Average Cost of Capital

The WACC of Eastman Kodak Co (KODK) is 12.4%.

The Cost of Equity of Eastman Kodak Co (KODK) is 12.10%.

The Cost of Debt of Eastman Kodak Co (KODK) is 14.85%.

	Range	Selected
Cost of equity	10.30% - 13.90%	12.10%
Tax rate	14.10% - 15.00%	14.55%
Cost of debt	5.30% - 24.40%	14.85%
WACC	7.6% - 17.1%	12.4%

WACC

KODK WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	1.4	1.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	13.90%

Tax rate	14.10%	15.00%
Debt/Equity ratio	0.86	0.86
Cost of debt	5.30%	24.40%

After-tax WACC	7.6%	17.1%


Selected WACC	12.4%

KODK'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 KODK:

cost_of_equity (12.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.4) + 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.