Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	4.2%	5.2%
Adjusted beta	0.77	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.4%	8.7%

Tax rate	0.1%	0.1%
Debt/Equity ratio	0.1	0.1
Cost of debt	5.0%	5.0%

After-tax WACC	6.3%	8.3%


Selected WACC	7.3%

MOSY WACC - Detailed calculations of Beta

		Debt/Equity		Unlevered
Peers	Company Name	ratio	Beta	beta

MOSY	MoSys Inc	0.1	2.31	2.1
INTC	Intel Corp	0.54	1.78	1.16
LEDS	SemiLEDs Corp	0.21	0.18	0.15
NPTN	NeoPhotonics Corp	0.05	0.75	0.71
PTK.V	POET Technologies Inc	0	0.3	0.3
QNC.V	Quantum Numbers Corp	0	0.18	0.18
QUIK	QuickLogic Corp	0.23	2.02	1.65
SESI	SES Solar Inc	59111.51	-12.43	0
SODI	Solitron Devices Inc	0.13	0.07	0.06
SQNS	Sequans Communications SA	2.05	0.86	0.28
WISA	Summit Wireless Technologies Inc	0.98	-5.44	-2.75

	Low	High

Unlevered beta	0.18	0.3
Relevered beta	0.66	0.79
Adjusted relevered beta	0.77	0.86

MOSY'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 MOSY:

cost_of_equity (7.55%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.77) + 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.