MRTI
Maxus Realty Trust Inc
Price:  
56 
USD
Volume:  
490
United States | Equity Real Estate Investment Trusts (REITs)

MRTI WACC - Weighted Average Cost of Capital

The WACC of Maxus Realty Trust Inc (MRTI) is 10.4%.

The Cost of Equity of Maxus Realty Trust Inc (MRTI) is 11.15%.
The Cost of Debt of Maxus Realty Trust Inc (MRTI) is 13.9%.

RangeSelected
Cost of equity8.8% - 13.5%11.15%
Tax rate26.2% - 27.0%26.6%
Cost of debt6.9% - 20.9%13.9%
WACC6.0% - 14.8%10.4%
WACC

MRTI WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta1.081.54
Additional risk adjustments0.0%0.5%
Cost of equity8.8%13.5%
Tax rate26.2%27.0%
Debt/Equity ratio
2.992.99
Cost of debt6.9%20.9%
After-tax WACC6.0%14.8%
Selected WACC10.4%

MRTI'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 MRTI:

cost_of_equity (11.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.08) + 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.