Question 1

What is EuroDry Ltd. Common Shares's WACC?

Accepted Answer

EuroDry Ltd. Common Shares (EDRY) has a Weighted Average Cost of Capital (WACC) of 6.51%. 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 6.37%, with an equity weight of 38.77% in the capital structure.

Question 2

Is EuroDry Ltd. Common Shares's WACC high or low?

Accepted Answer

EuroDry Ltd. Common Shares's WACC of 6.51% 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 EuroDry Ltd. Common Shares's WACC calculated?

Accepted Answer

EuroDry Ltd. Common Shares'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 6.37%. The capital structure is 38.77% equity and 61.23% debt.

EuroDry Ltd. Common Shares (EDRY) — WACC 分析

WACC 构成

解读

EuroDry Ltd. Common Shares（EDRY）WACC：6.51%

WACC计算器

EuroDry Ltd. Common Shares（EDRY） WACC 解读

EDRY 公司分析

EDRY DCF 估值

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