RCC.H.V WACC - Weighted Average Cost of Capital
The WACC of Red Rock Capital Corp (RCC.H.V) is 5.7%.
| Range | Selected | |
| Cost of equity | 5.7% - 9.8% | 7.75% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.7% - 6.7% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.36 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 9.8% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.7% | 6.7% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RCC.H.V | Red Rock Capital Corp | 0.89 | 3.55 | 2.15 |
| ATMS | Artemis Therapeutics Inc | 0 | 0.46 | 0.46 |
| AVNI | Arvana Inc | 0 | 1.03 | 1.03 |
| CLV.V | Canoe Mining Ventures Corp | 1.19 | -2.84 | -1.52 |
| FCIC | FCCC Inc | 25.43 | -0.22 | -0.01 |
| KUR.H.V | Kure Technologies Inc | 0.93 | -2.05 | -1.22 |
| LLL.CN | Lanebury Growth Capital Ltd | 6.66 | -1.16 | -0.2 |
| PTEL | Pegasus Tel Inc | 0.03 | 0.93 | 0.92 |
| TNRG | Thunder Energies Corp | 15.39 | -24.24 | -1.98 |
| ZENO | Zenosense Inc | 18.93 | -0.27 | -0.02 |
| Low | High | |
| Unlevered beta | -0.09 | 0.18 |
| Relevered beta | 0.04 | 0.72 |
| Adjusted relevered beta | 0.36 | 0.81 |
RCC.H.V'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 RCC.H.V:
cost_of_equity (7.75%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.36) + 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.