BMO Capital and Income Investment Trust PLC (BCI.L) WACC Analysis

As of May 23, 2025, BMO Capital and Income Investment Trust PLC (BCI.L) carries a Weighted Average Cost of Capital (WACC) of 9.8%. WACC reflects the blended rate BMO Capital and Income Investment Trust PLC must pay to both equity and debt holders.

Within that, the cost of equity is 8.9%, the cost of debt is 4.0%, and the effective tax rate is 0.0%.

Breakdown of WACC Components

• Long-term bond rate: 2.9% – 3.4%
• Equity market risk premium: 5.3% – 6.3%
• Adjusted beta: 1.11 – 1.2
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.08

What It Means for Investors

With a selected WACC of 9.8%, BMO Capital and Income Investment Trust PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.