Question 1

What is Kustom Entertainment, Inc. Common Stock's WACC?

Accepted Answer

Kustom Entertainment, Inc. Common Stock (KUST) has a Weighted Average Cost of Capital (WACC) of 20.00%. This is calculated using a Cost of Equity of 8.49% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 2704.31%, with an equity weight of 94.12% in the capital structure.

Question 2

Is Kustom Entertainment, Inc. Common Stock's WACC high or low?

Accepted Answer

Kustom Entertainment, Inc. Common Stock's WACC of 20.00% is above the typical range, indicating higher perceived risk and cost of capital. 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 Kustom Entertainment, Inc. Common Stock's WACC calculated?

Accepted Answer

Kustom Entertainment, 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 8.49% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 2704.31%. The capital structure is 94.12% equity and 5.88% debt.

Kustom Entertainment, Inc. Common Stock (KUST) — WACC 分析

WACC 构成

解读

Kustom Entertainment, Inc. Common Stock（KUST）WACC：20.00%

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Kustom Entertainment, Inc. Common Stock（KUST） WACC 解读

KUST 公司分析

KUST DCF 估值

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