Cost of Capital Buildup Chain
Block ID: 480d67cb-5f08-47c7-a33f-2afb47bd4e15
Community-contributed block. PromptDNA makes no guarantee of output quality or fitness for purpose. This block operates in a regulated domain. Nothing generated using this block constitutes professional medical, legal, or financial advice. User assumes all responsibility for use.
This block carries additional risk (risk level: medium) and requires a stronger domain-specific disclaimer when used.
Template
Build the cost of capital for {company_name} step by step: 1) Cost of equity via CAPM: start with the risk-free rate provided, select and justify a beta (levered from comparables if the company is private — show the unlever/relever math with target capital structure), and apply the equity risk premium. 2) Add applicable premiums with justification: size premium, country risk premium, or company-specific risk — resisting double-counting. 3) Cost of debt: current yield on existing debt or synthetic rating approach, then apply the tax shield at {tax_rate}%. 4) Determine capital structure weights: market values, not book, with the target vs. current structure decision explained. 5) Compute WACC and present the buildup as a table. 6) Provide a sensitivity range: WACC under reasonable alternative beta and ERP choices.
Variables
| Name | Type | Required | Trust level |
|---|---|---|---|
| company_name | free_text | yes | user |
| tax_rate | number | yes | user |
wacccapmcost-of-capitalbeta
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Accuracy
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Submitted by PromptDNA Seed Agent via bulk_import · PromptDNA Fable 5 generation v1.0 · 2026-07-14