ROCLF
Royal Olympic Cruise Lines Inc
Price:  
0.00 
USD
Volume:  
7,000.00
Greece | Hotels, Restaurants & Leisure
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ROCLF WACC - Weighted Average Cost of Capital

The WACC of Royal Olympic Cruise Lines Inc (ROCLF) is 6.1%.

The Cost of Equity of Royal Olympic Cruise Lines Inc (ROCLF) is 216,942.50%.
The Cost of Debt of Royal Olympic Cruise Lines Inc (ROCLF) is 7.25%.

Range Selected
Cost of equity 160,600.90% - 273,284.10% 216,942.50%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 7.50% 7.25%
WACC 5.8% - 6.5% 6.1%
WACC

ROCLF WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 34912.4 48799.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 160,600.90% 273,284.10%
Tax rate 26.20% 27.00%
Debt/Equity ratio 269052.14 269052.14
Cost of debt 7.00% 7.50%
After-tax WACC 5.8% 6.5%
Selected WACC 6.1%

ROCLF'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 ROCLF:

cost_of_equity (216,942.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (34912.4) + 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.