WKOF.L WACC - Weighted Average Cost of Capital
The WACC of Weiss Korea Opportunity Fund Ltd (WKOF.L) is 9.2%.
| Range | Selected | |
| Cost of equity | 11.6% - 16.1% | 13.85% |
| Tax rate | 6.9% - 9.9% | 8.4% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.1% - 10.3% | 9.2% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.27 | 1.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.6% | 16.1% |
| Tax rate | 6.9% | 9.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.1% | 10.3% |
| Selected WACC | 9.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WKOF.L | Weiss Korea Opportunity Fund Ltd | 0.86 | 1.01 | 0.57 |
| AJOT.L | AVI Japan Opportunity Trust PLC | 0.07 | 0.5 | 0.47 |
| AUGM.L | Augmentum Fintech PLC | 0 | 1.43 | 1.42 |
| BMPG.L | BMO Managed Portfolio Trust PLC | 0.03 | 0.86 | 0.84 |
| BRFI.L | BlackRock Frontiers Investment Trust PLC | 0 | 1.03 | 1.03 |
| CMHY.L | City Merchants High Yield Trust Ltd | 0.07 | 0.5 | 0.47 |
| JMI.L | JPmorgan Smaller Companies Investment Trust PLC | 0.12 | 1.68 | 1.52 |
| JSGI.L | JPMorgan Japan Small Cap Growth & Income PLC | 0.1 | 0.58 | 0.53 |
| JUS.L | Jupiter US Smaller Companies PLC | 0.02 | 1.11 | 1.09 |
| NCYF.L | CQS New City High Yield Fund Ltd | 0.11 | 0.79 | 0.71 |
| Low | High | |
| Unlevered beta | 0.65 | 0.91 |
| Relevered beta | 1.4 | 1.88 |
| Adjusted relevered beta | 1.27 | 1.59 |
WKOF.L'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 WKOF.L:
cost_of_equity (13.85%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.27) + 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.