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Blackrock Muniyield Pennsylvania Quality Fund (Blackrock Muniyield Pennsylvania Quality Fund) WACC % :5.48% (As of Jul. 15, 2024)


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What is Blackrock Muniyield Pennsylvania Quality Fund WACC %?

As of today (2024-07-15), Blackrock Muniyield Pennsylvania Quality Fund's weighted average cost of capital is 5.48%%. Blackrock Muniyield Pennsylvania Quality Fund's ROIC % is 0.00% (calculated using TTM income statement data). Blackrock Muniyield Pennsylvania Quality Fund 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.


Blackrock Muniyield Pennsylvania Quality Fund WACC % Historical Data

The historical data trend for Blackrock Muniyield Pennsylvania Quality Fund'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.

Blackrock Muniyield Pennsylvania Quality Fund WACC % Chart

Blackrock Muniyield Pennsylvania Quality Fund Annual Data
Trend Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
WACC %
Get a 7-Day Free Trial 4.88 2.78 0.74 2.01 8.83

Blackrock Muniyield Pennsylvania Quality Fund Semi-Annual Data
Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
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 3.83 2.01 6.79 8.83 9.86

Competitive Comparison of Blackrock Muniyield Pennsylvania Quality Fund's WACC %

For the Asset Management subindustry, Blackrock Muniyield Pennsylvania Quality Fund'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.


Blackrock Muniyield Pennsylvania Quality Fund's WACC % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Blackrock Muniyield Pennsylvania Quality Fund's WACC % distribution charts can be found below:

* The bar in red indicates where Blackrock Muniyield Pennsylvania Quality Fund's WACC % falls into.



Blackrock Muniyield Pennsylvania Quality Fund 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, Blackrock Muniyield Pennsylvania Quality Fund's market capitalization (E) is $162.000 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 Jan. 2024, Blackrock Muniyield Pennsylvania Quality Fund's latest one-year semi-annual average Book Value of Debt (D) is $7.04 Mil.
a) weight of equity = E / (E + D) = 162.000 / (162.000 + 7.04) = 0.9584
b) weight of debt = D / (E + D) = 7.04 / (162.000 + 7.04) = 0.0416

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 4.215%. 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. Blackrock Muniyield Pennsylvania Quality Fund's beta is -0.16.
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 = 4.215% + -0.16 * 6% = 3.255%

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 Jan. 2024, Blackrock Muniyield Pennsylvania Quality Fund's interest expense (positive number) was $3.987 Mil. Its total Book Value of Debt (D) is $7.04 Mil.
Cost of Debt = 3.987 / 7.04 = 56.6335%.

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 / 2.619 = 0%.

Blackrock Muniyield Pennsylvania Quality Fund'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)
=0.9584*3.255%+0.0416*56.6335%*(1 - 0%)
=5.48%

* 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.


Blackrock Muniyield Pennsylvania Quality Fund  (NYSE:MPA) 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, Blackrock Muniyield Pennsylvania Quality Fund's weighted average cost of capital is 5.48%%. Blackrock Muniyield Pennsylvania Quality Fund's ROIC % is 0.00% (calculated using TTM income statement data). Blackrock Muniyield Pennsylvania Quality Fund 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

Blackrock Muniyield Pennsylvania Quality Fund (Blackrock Muniyield Pennsylvania Quality Fund) Business Description

Traded in Other Exchanges
N/A
Address
100 Bellevue Parkway, Wilmington, DE, USA, 19809
Blackrock Muniyield Pennsylvania Quality Fund is a closed-end fund with investment objective is to provide shareholders with current income exempt from U.S. federal and Pennsylvania income taxes.
Executives
Saba Capital Management, L.p. 10 percent owner 405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174
Arthur Philip Steinmetz director 50 HUDSON YARDS, NEW YORK NY 10001
Aaron David Wasserman officer: Chief Compliance Officer 50 HUDSON YARDS, NEW YORK NY 10001
Boaz Weinstein 10 percent owner 405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174
Kevin Maloney other: Portfolio Manager 55 EAST 52ND STREET, NEW YORK NY 10055
Kristi Manidis Santiago other: Portfolio Manager 1 UNIVERSITY SQUARE DRIVE, PRINCETON NJ 08540
Walter Oconnor other: Portfolio Manager 800 SCUDDERS MILL ROAD, PLAINSBORO NJ 08536
Michael Kalinoski other: Portfolio Manager 800 SCUDDERS MILL ROAD, PLAINSBORO NJ 08536
Christian Romaglino other: Portfolio Manager 55 EAST 52ND STREET, NEW YORK NY 10055
Toronto Dominion Investments, Inc. 10 percent owner 909 FANIN, SUITE 1950, HOUSTON TX 77010
Td Group Us Holdings Llc 10 percent owner 251 LITTLE FALLS DRIVE, WILMINGTON DE 19808
Dominion Bank Toronto 10 percent owner 66 WELLINGTON STREET WEST, 12TH FLOOR, TD TOWER, TORONTO, ONTARIO A6 M5K 1A2
Td Securities (usa) Llc 10 percent owner ONE VANDERBILT AVENUE, NEW YORK NY 10017
Toronto Dominion Holdings Usa Inc 10 percent owner 40 WALL STREET, NEW YORK NY 10003
Lorenzo Flores director 2100 LOGIC DRIVE, SAN JOSE CA 95124