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RiverNorth Flexible Municipalome Fund WACC %

:5.26 (As of Today)
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As of today (2021-10-25), RiverNorth Flexible Municipalome Fund's weighted average cost of capital is 5.26%. RiverNorth Flexible Municipalome Fund's ROIC % is 0.00% (calculated using TTM income statement data). RiverNorth Flexible Municipalome Fund earns returns that do not match up to its cost of capital. It will destroy value as it grows.

*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.


RiverNorth Flexible Municipalome Fund WACC % Historical Data

The historical data trend for RiverNorth Flexible Municipalome 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.

RiverNorth Flexible Municipalome Fund Annual Data
Trend Jun20 Jun21
WACC %
- -

RiverNorth Flexible Municipalome Fund Semi-Annual Data
Jun20 Dec20 Jun21
WACC % - - -

Competitive Comparison

For the Asset Management subindustry, RiverNorth Flexible Municipalome 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.

   

RiverNorth Flexible Municipalome Fund WACC % Distribution

For the Asset Management industry and Financial Services sector, RiverNorth Flexible Municipalome Fund's WACC % distribution charts can be found below:

* The bar in red indicates where RiverNorth Flexible Municipalome Fund's WACC % falls into.



RiverNorth Flexible Municipalome 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)


RiverNorth Flexible Municipalome Fund  (NYSE:RFM) 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, RiverNorth Flexible Municipalome Fund's weighted average cost of capital is 5.26%. RiverNorth Flexible Municipalome Fund's ROIC % is 0.00% (calculated using TTM income statement data). RiverNorth Flexible Municipalome Fund earns returns that do not match up to its cost of capital. It will destroy value as it grows.

*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.


Be Aware

1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest two-year average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.

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 last fiscal year end Interest Expense divided by the latest two-year average debt to get the simplified cost of debt.


Related Terms

RiverNorth Flexible Municipalome Fund Business Description

RiverNorth Flexible Municipalome Fund logo
Industry
Financial Services » Asset Management NAICS : 523991 SIC : 6733
Comparable Companies
Traded in Other Exchanges
N/A
Address
325 North LaSalle Street, Suite 645, Chicago, IL, USA, 60654
RiverNorth Flexible Municipal Income Fund Inc is a diversified, closed-end management investment company. Its primary investment objective is to seek current income exempt from regular U.S. federal income taxes. The fund's secondary investment objective is total return.
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