LQWC
Lifequest World Corp
Price:  
0.01 
USD
Volume:  
23,000.00
United States | Personal Products
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LQWC WACC - Weighted Average Cost of Capital

The WACC of Lifequest World Corp (LQWC) is 4.3%.

The Cost of Equity of Lifequest World Corp (LQWC) is 6.45%.
The Cost of Debt of Lifequest World Corp (LQWC) is 5.00%.

Range Selected
Cost of equity 3.90% - 9.00% 6.45%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.7% - 4.9% 4.3%
WACC

LQWC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta -0.22 0.55
Additional risk adjustments 1.0% 1.5%
Cost of equity 3.90% 9.00%
Tax rate 26.20% 27.00%
Debt/Equity ratio 3.18 3.18
Cost of debt 5.00% 5.00%
After-tax WACC 3.7% 4.9%
Selected WACC 4.3%

LQWC'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 LQWC:

cost_of_equity (6.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-0.22) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.