Question 1

What is Bassett Furniture Industries I's WACC?

Accepted Answer

Bassett Furniture Industries I (BSET) has a Weighted Average Cost of Capital (WACC) of 7.44%. This is calculated using a Cost of Equity of 7.44% (via CAPM with a beta of 0.56) and a pre-tax Cost of Debt of 5.00%, with an equity weight of 100.00% in the capital structure.

Question 2

Is Bassett Furniture Industries I's WACC high or low?

Accepted Answer

Bassett Furniture Industries I's WACC of 7.44% 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 Bassett Furniture Industries I's WACC calculated?

Accepted Answer

Bassett Furniture Industries I's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.44% is derived from the CAPM model using a beta of 0.56. The pre-tax Cost of Debt (Rd) is 5.00%. The capital structure is 100.00% equity and 0.00% debt.

Bassett Furniture Industries I (BSET) — WACC 分析

WACC 构成

解读

Bassett Furniture Industries I（BSET）WACC：7.44%

WACC计算器

Bassett Furniture Industries I（BSET） WACC 解读

BSET 公司分析

BSET DCF 估值

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