RPP.V WACC - Weighted Average Cost of Capital
The WACC of Regent Pacific Properties Inc (RPP.V) is 4.3%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.7% | 7.05% |
| Tax rate | 20.5% - 36.3% | 28.4% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 3.4% - 5.2% | 4.3% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.3 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 8.7% |
| Tax rate | 20.5% | 36.3% |
| Debt/Equity ratio | 8.5 | 8.5 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 3.4% | 5.2% |
| Selected WACC | 4.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RPP.V | Regent Pacific Properties Inc | 8.5 | -0.11 | -0.02 |
| ASAV | ASI Aviation Inc | 0.35 | 1.08 | 0.86 |
| BGII | BGI Inc | 0.12 | -0.15 | -0.14 |
| FGNV | Forge Innovation Development Corp | 1.07 | -0.05 | -0.03 |
| GIPR | Generation Income Properties Inc | 7.43 | 0.78 | 0.12 |
| HBUV | Hubilu Venture Corporation | 0.5 | 0 | 0 |
| PTTTS | Palmetto Real Estate Trust | 0.77 | 0.28 | 0.18 |
| RCO.UN.TO | Middlefield Can-Global REIT Income Fund | 0.05 | 0.92 | 0.89 |
| RLP.V | Realia Properties Inc | 8.85 | 0.15 | 0.02 |
| XALL | Xalles Holdings Inc | 67.38 | -0.81 | -0.02 |
| Low | High | |
| Unlevered beta | -0.01 | 0.06 |
| Relevered beta | -0.04 | 0.43 |
| Adjusted relevered beta | 0.3 | 0.62 |
RPP.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 RPP.V:
cost_of_equity (7.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.3) + 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.