UCPA
United Communications Partners Inc
Price:  
0.00 
USD
Volume:  
1,568,610.00
United States | Media
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UCPA WACC - Weighted Average Cost of Capital

The WACC of United Communications Partners Inc (UCPA) is 8.3%.

The Cost of Equity of United Communications Partners Inc (UCPA) is 9.05%.
The Cost of Debt of United Communications Partners Inc (UCPA) is 5.00%.

Range Selected
Cost of equity 7.70% - 10.40% 9.05%
Tax rate 7.30% - 14.00% 10.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.2% - 9.4% 8.3%
WACC

UCPA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.84 0.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.40%
Tax rate 7.30% 14.00%
Debt/Equity ratio 0.2 0.2
Cost of debt 5.00% 5.00%
After-tax WACC 7.2% 9.4%
Selected WACC 8.3%

UCPA'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 UCPA:

cost_of_equity (9.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.84) + 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.