Question 1

What is Transcontinental Realty Investors, Inc.'s WACC?

Accepted Answer

Transcontinental Realty Investors, Inc. (TCI) has a Weighted Average Cost of Capital (WACC) of 6.74%. 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 4.20%, with an equity weight of 66.08% in the capital structure.

Question 2

Is Transcontinental Realty Investors, Inc.'s WACC high or low?

Accepted Answer

Transcontinental Realty Investors, Inc.'s WACC of 6.74% 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 Transcontinental Realty Investors, Inc.'s WACC calculated?

Accepted Answer

Transcontinental Realty Investors, Inc.'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 4.20%. The capital structure is 66.08% equity and 33.92% debt.

Transcontinental Realty Investors, Inc. (TCI) — WACC 分析

WACC 构成

解读

Transcontinental Realty Investors, Inc.（TCI）WACC：6.74%

WACC计算器

Transcontinental Realty Investors, Inc.（TCI） WACC 解读

TCI 公司分析

TCI DCF 估值

继续做同行对比