MACE
Mace Security International Inc
Price:  
0.02 
USD
Volume:  
53,830.00
United States | Electronic Equipment, Instruments & Components
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MACE WACC - Weighted Average Cost of Capital

The WACC of Mace Security International Inc (MACE) is 10.5%.

The Cost of Equity of Mace Security International Inc (MACE) is 8.25%.
The Cost of Debt of Mace Security International Inc (MACE) is 16.20%.

Range Selected
Cost of equity 6.60% - 9.90% 8.25%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 25.40% 16.20%
WACC 5.7% - 15.4% 10.5%
WACC

MACE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.6 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 9.90%
Tax rate 26.20% 27.00%
Debt/Equity ratio 1.74 1.74
Cost of debt 7.00% 25.40%
After-tax WACC 5.7% 15.4%
Selected WACC 10.5%

MACE'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 MACE:

cost_of_equity (8.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.6) + 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.