RSPI
RespireRx Pharmaceuticals Inc
Price:  
0.00 
USD
Volume:  
697,650.00
United States | Pharmaceuticals
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RSPI WACC - Weighted Average Cost of Capital

The WACC of RespireRx Pharmaceuticals Inc (RSPI) is 4.5%.

The Cost of Equity of RespireRx Pharmaceuticals Inc (RSPI) is 13.95%.
The Cost of Debt of RespireRx Pharmaceuticals Inc (RSPI) is 5.00%.

Range Selected
Cost of equity 7.70% - 20.20% 13.95%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.0% - 5.0% 4.5%
WACC

RSPI WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.83 2.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 20.20%
Tax rate 26.20% 27.00%
Debt/Equity ratio 11.27 11.27
Cost of debt 5.00% 5.00%
After-tax WACC 4.0% 5.0%
Selected WACC 4.5%

RSPI'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 RSPI:

cost_of_equity (13.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.83) + 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.