MCT.L
Middlefield Canadian Income PCC
Price:  
132 
GBP
Volume:  
95,642
Jersey | Finance and Insurance

MCT.L WACC - Weighted Average Cost of Capital

The WACC of Middlefield Canadian Income PCC (MCT.L) is 7.9%.

The Cost of Equity of Middlefield Canadian Income PCC (MCT.L) is 8.6%.
The Cost of Debt of Middlefield Canadian Income PCC (MCT.L) is 5%.

RangeSelected
Cost of equity7.3% - 9.9%8.6%
Tax rate6.1% - 8.2%7.15%
Cost of debt5.0% - 5.0%5%
WACC6.9% - 9.0%7.9%
WACC

MCT.L WACC calculation

CategoryLowHigh
Long-term bond rate4.0%4.5%
Equity market risk premium6.0%7.0%
Adjusted beta0.560.71
Additional risk adjustments0.0%0.5%
Cost of equity7.3%9.9%
Tax rate6.1%8.2%
Debt/Equity ratio
0.210.21
Cost of debt5.0%5.0%
After-tax WACC6.9%9.0%
Selected WACC7.9%

MCT.L'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 MCT.L:

cost_of_equity (8.60%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.56) + 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.