MLHC
M Line Holdings Inc
Price:  
0.00 
USD
Volume:  
2,944,330.00
United States | Beverages
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MLHC WACC - Weighted Average Cost of Capital

The WACC of M Line Holdings Inc (MLHC) is 12.1%.

The Cost of Equity of M Line Holdings Inc (MLHC) is 952.15%.
The Cost of Debt of M Line Holdings Inc (MLHC) is 11.85%.

Range Selected
Cost of equity 87.50% - 1,816.80% 952.15%
Tax rate 0.30% - 0.60% 0.45%
Cost of debt 7.00% - 16.70% 11.85%
WACC 7.0% - 17.2% 12.1%
WACC

MLHC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 18.17 323.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 87.50% 1,816.80%
Tax rate 0.30% 0.60%
Debt/Equity ratio 3103.85 3103.85
Cost of debt 7.00% 16.70%
After-tax WACC 7.0% 17.2%
Selected WACC 12.1%

MLHC'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 MLHC:

cost_of_equity (952.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (18.17) + 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.