Question 1

What is News Corporation Class B Common Stock's WACC?

Accepted Answer

News Corporation Class B Common Stock (NWS) has a Weighted Average Cost of Capital (WACC) of 7.76%. This is calculated using a Cost of Equity of 8.49% (via CAPM with a beta of 0.95) and a pre-tax Cost of Debt of 2.00%, with an equity weight of 89.46% in the capital structure.

Question 2

Is News Corporation Class B Common Stock's WACC high or low?

Accepted Answer

News Corporation Class B Common Stock's WACC of 7.76% 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 News Corporation Class B Common Stock's WACC calculated?

Accepted Answer

News Corporation Class B 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 0.95. The pre-tax Cost of Debt (Rd) is 2.00%. The capital structure is 89.46% equity and 10.54% debt.

News Corporation Class B Common Stock (NWS) — WACC 分析

WACC 构成

解读

News Corporation Class B Common Stock（NWS）WACC：7.76%

WACC计算器

News Corporation Class B Common Stock（NWS） WACC 解读

NWS 公司分析

NWS DCF 估值

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