KYN
Kayne Anderson Energy Infrastructure Fund Inc
Price:  
11.98 
USD
Volume:  
323,246.00
United States | N/A
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KYN WACC - Weighted Average Cost of Capital

The WACC of Kayne Anderson Energy Infrastructure Fund Inc (KYN) is 9.3%.

The Cost of Equity of Kayne Anderson Energy Infrastructure Fund Inc (KYN) is 9.95%.
The Cost of Debt of Kayne Anderson Energy Infrastructure Fund Inc (KYN) is 8.20%.

Range Selected
Cost of equity 8.90% - 11.00% 9.95%
Tax rate 19.50% - 19.80% 19.65%
Cost of debt 4.00% - 12.40% 8.20%
WACC 7.7% - 10.8% 9.3%
WACC

KYN WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.08 1.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.00%
Tax rate 19.50% 19.80%
Debt/Equity ratio 0.25 0.25
Cost of debt 4.00% 12.40%
After-tax WACC 7.7% 10.8%
Selected WACC 9.3%

KYN'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 KYN:

cost_of_equity (9.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.08) + 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.