MPCORP.KL
Malaysia Pacific Corporation Bhd
Price:  
0.04 
MYR
Volume:  
5,340,000
Malaysia | Real Estate Management & Development

MPCORP.KL WACC - Weighted Average Cost of Capital

The WACC of Malaysia Pacific Corporation Bhd (MPCORP.KL) is 7.1%.

The Cost of Equity of Malaysia Pacific Corporation Bhd (MPCORP.KL) is 7.3%.
The Cost of Debt of Malaysia Pacific Corporation Bhd (MPCORP.KL) is 5.5%.

RangeSelected
Cost of equity6.2% - 8.4%7.3%
Tax rate24.0% - 24.0%24%
Cost of debt4.0% - 7.0%5.5%
WACC6.0% - 8.2%7.1%
WACC

MPCORP.KL WACC calculation

CategoryLowHigh
Long-term bond rate3.8%4.3%
Equity market risk premium6.9%7.8%
Adjusted beta0.350.46
Additional risk adjustments0.0%0.5%
Cost of equity6.2%8.4%
Tax rate24.0%24.0%
Debt/Equity ratio
0.060.06
Cost of debt4.0%7.0%
After-tax WACC6.0%8.2%
Selected WACC7.1%

MPCORP.KL'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 MPCORP.KL:

cost_of_equity (7.30%) = risk_free_rate (4.05%) + equity_risk_premium (7.35%) * adjusted_beta (0.35) + 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.