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HTD (John Hancock Tax-advantaged Div Fd) WACC % :2.12% (As of Dec. 13, 2024)


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What is John Hancock Tax-advantaged Div Fd WACC %?

As of today (2024-12-13), John Hancock Tax-advantaged Div Fd's weighted average cost of capital is 2.12%%. John Hancock Tax-advantaged Div Fd's ROIC % is 0.00% (calculated using TTM income statement data). John Hancock Tax-advantaged Div Fd earns returns that do not match up to its cost of capital. It will destroy value as it grows.

For a comprehensive WACC calculation, please access the WACC Calculator.


John Hancock Tax-advantaged Div Fd WACC % Historical Data

The historical data trend for John Hancock Tax-advantaged Div Fd's WACC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

John Hancock Tax-advantaged Div Fd WACC % Chart

John Hancock Tax-advantaged Div Fd Annual Data
Trend Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
WACC %
Get a 7-Day Free Trial 7.69 6.46 8.09 10.46 10.64

John Hancock Tax-advantaged Div Fd Semi-Annual Data
Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24
WACC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.07 10.46 8.44 10.64 10.39

Competitive Comparison of John Hancock Tax-advantaged Div Fd's WACC %

For the Asset Management subindustry, John Hancock Tax-advantaged Div Fd's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


John Hancock Tax-advantaged Div Fd's WACC % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, John Hancock Tax-advantaged Div Fd's WACC % distribution charts can be found below:

* The bar in red indicates where John Hancock Tax-advantaged Div Fd's WACC % falls into.



John Hancock Tax-advantaged Div Fd WACC % Calculation

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.

WACC=E/(E + D)*Cost of Equity+D/(E + D)*Cost of Debt*(1 - Tax Rate)

1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, John Hancock Tax-advantaged Div Fd's market capitalization (E) is $797.216 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Apr. 2024, John Hancock Tax-advantaged Div Fd's latest one-year semi-annual average Book Value of Debt (D) is $0 Mil.
a) weight of equity = E / (E + D) = 797.216 / (797.216 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (797.216 + 0) = 0

2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.397%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. John Hancock Tax-advantaged Div Fd's beta is -0.38.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.397% + -0.38 * 6% = 2.117%

3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Apr. 2024, John Hancock Tax-advantaged Div Fd's interest expense (positive number) was $25.366 Mil. Its total Book Value of Debt (D) is $0 Mil.
Cost of Debt = 25.366 / 0 = %.

4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0 / 39.089 = 0%.

John Hancock Tax-advantaged Div Fd's Weighted Average Cost Of Capital (WACC) for Today is calculated as:

WACC=E / (E + D)*Cost of Equity+D / (E + D)*Cost of Debt*(1 - Tax Rate)
=1*2.117%+0*%*(1 - 0%)
=2.12%

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


John Hancock Tax-advantaged Div Fd  (NYSE:HTD) WACC % Explanation

Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, John Hancock Tax-advantaged Div Fd's weighted average cost of capital is 2.12%%. John Hancock Tax-advantaged Div Fd's ROIC % is 0.00% (calculated using TTM income statement data). John Hancock Tax-advantaged Div Fd earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Be Aware

1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.

2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.

3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.

4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.


Related Terms

John Hancock Tax-advantaged Div Fd Business Description

Traded in Other Exchanges
N/A
Address
200 Berkeley Street, Boston, MA, USA, 02116
John Hancock Tax-advantaged Div Inc Fd is a closed-end, diversified management investment company. Its investment objective is to provide a high after-tax total return from dividend income and capital appreciation. The fund's portfolio composition consists of common stocks, preferred securities, corporate bonds, and short-term investments. Its sector composition comprises utilities, financials, energy, telecommunication services, industrials, healthcare, real estate, consumer discretionary and short-term investments.
Executives
Dean Garfield director C/O JOHN HANCOCK, 200 BERKELEY STREET, BOSTON MA 02116
Noni L Ellison director TRACTOR SUPPLY, 5401 VIRGINIA WAY, BRENTWOOD TN 37027
Andy Mcfetridge officer: Director of the Adviser 200 BERKELEY STREET, BOSTON MA 02116
Kristie Feinberg officer: President & CEO of the Adviser C/O JOHN HANCOCK, 200 BERKELEY STREET, BOSTON MA 02116
York Lo officer: Vice President, Investments C/O JOHN HANCOCK, 200 BERKELEY STREET, BOSTON MA 02116
Kathryn Hayes other: Filer and Employee of the Fund C/O JOHN HANCOCK, 200 BERKELEY STREET, BOSTON MA 02116
Patricia Lizarraga director C/O JOHN, 200 BERKELEY STREET, BOSTON MA 02116
Paul Lorentz director C/O JOHN HANCOCK, 200 BERKELEY STREET, BOSTON MA 02116
Arthur Pigott officer: VP of the Adviser C/O JOHN HANCOCK, 200 BERKELEY STREET, BOSTON MA 02116
Glen J Gibbons officer: VP of the Adviser C/O JOHN HANCOCK, 200 BERKELEY STREET, BOSTON MA 02116
Frances G Rathke other: Trustee of the Fund C/O GREEN MOUNTAIN COFFEE ROASTERS, INC., 33 COFFEE LANE, WATERBURY VT 05676
Brian Macphee officer: Vice President of the Adviser C/O JOHN HANCOCK, 164 CORPORATE DRIVE, PORTSMOUTH NH 03801
Sean Speer officer: Vice President of the Adviser C/O JOHN HANCOCK, 197 CLARENDON STREET, BOSTON MA 02116
Michael Tassinari officer: Vice President of the Adviser C/O JOHN HANCOCK, 200 BERKELEY STREET, BOSTON MA 02116
Christopher Pompilio officer: Vice President of the Adviser C/O JOHN HANCOCK, 200 BERKELEY STREET, BOSTON MA 02116

John Hancock Tax-advantaged Div Fd Headlines

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