ROCC WACC - Weighted Average Cost of Capital

The WACC of Roth CH Acquisition II Co (ROCC) is 8.2%.

The Cost of Equity of Roth CH Acquisition II Co (ROCC) is 9.70%.

The Cost of Debt of Roth CH Acquisition II Co (ROCC) is 4.50%.

	Range	Selected
Cost of equity	7.90% - 11.50%	9.70%
Tax rate	0.40% - 0.80%	0.60%
Cost of debt	4.50% - 4.50%	4.50%
WACC	6.9% - 9.5%	8.2%

WACC

ROCC WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.88	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.90%	11.50%

Tax rate	0.40%	0.80%
Debt/Equity ratio	0.39	0.39
Cost of debt	4.50%	4.50%

After-tax WACC	6.9%	9.5%


Selected WACC	8.2%

ROCC'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 ROCC:

cost_of_equity (9.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.88) + 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.