Question 1

What is Friedman Industries Inc. Common Stock's WACC?

Accepted Answer

Friedman Industries Inc. Common Stock (FRD) has a Weighted Average Cost of Capital (WACC) of 7.61%. This is calculated using a Cost of Equity of 7.61% (via CAPM with a beta of 0.62) and a pre-tax Cost of Debt of 5.00%, with an equity weight of 100.00% in the capital structure.

Question 2

Is Friedman Industries Inc. Common Stock's WACC high or low?

Accepted Answer

Friedman Industries Inc. Common Stock's WACC of 7.61% 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 Friedman Industries Inc. Common Stock's WACC calculated?

Accepted Answer

Friedman Industries Inc. Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 7.61% is derived from the CAPM model using a beta of 0.62. The pre-tax Cost of Debt (Rd) is 5.00%. The capital structure is 100.00% equity and 0.00% debt.

Friedman Industries Inc. Common Stock (FRD) — WACC 分析

WACC 构成

解读

Friedman Industries Inc. Common Stock（FRD）WACC：7.61%

WACC计算器

Friedman Industries Inc. Common Stock（FRD） WACC 解读

FRD 公司分析

FRD DCF 估值

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