Question 1

What is ACRES Commercial Realty Corp.'s WACC?

Accepted Answer

ACRES Commercial Realty Corp. (ACR) has a Weighted Average Cost of Capital (WACC) of 4.05%. This is calculated using a Cost of Equity of 8.85% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 4.72%, with an equity weight of 6.33% in the capital structure.

Question 2

Is ACRES Commercial Realty Corp.'s WACC high or low?

Accepted Answer

ACRES Commercial Realty Corp.'s WACC of 4.05% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is ACRES Commercial Realty Corp.'s WACC calculated?

Accepted Answer

ACRES Commercial Realty Corp.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.85% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 4.72%. The capital structure is 6.33% equity and 93.67% debt.

ACRES Commercial Realty Corp. (ACR) — WACC 分析

WACC 构成

解读

ACRES Commercial Realty Corp.（ACR）WACC：4.05%

WACC计算器

ACRES Commercial Realty Corp.（ACR） WACC 解读

ACR 公司分析

ACR DCF 估值

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