TCCO
Technical Communications Corp
Price:  
0.00 
USD
Volume:  
190.00
United States | Communications Equipment
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TCCO WACC - Weighted Average Cost of Capital

The WACC of Technical Communications Corp (TCCO) is 5.4%.

The Cost of Equity of Technical Communications Corp (TCCO) is 4,099.30%.
The Cost of Debt of Technical Communications Corp (TCCO) is 7.00%.

Range Selected
Cost of equity 5.00% - 8,193.60% 4,099.30%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 7.00% 7.00%
WACC 5.2% - 5.6% 5.4%
WACC

TCCO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta -455.3 1088.07
Additional risk adjustments 2095.5% 2096.0%
Cost of equity 5.00% 8,193.60%
Tax rate 26.20% 27.00%
Debt/Equity ratio 17027.03 17027.03
Cost of debt 7.00% 7.00%
After-tax WACC 5.2% 5.6%
Selected WACC 5.4%

TCCO'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 TCCO:

cost_of_equity (4,099.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-455.3) + risk_adjustments (2,095.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.