Nextpoint Acquisition Corp (NAC.U.TO) WACC Analysis

As of May 24, 2025, Nextpoint Acquisition Corp (NAC.U.TO) carries a Weighted Average Cost of Capital (WACC) of 6.2%. WACC reflects the blended rate Nextpoint Acquisition Corp must pay to both equity and debt holders.

Within that, the cost of equity is 9.0%, the cost of debt is 5.0%, and the effective tax rate is 26.5%.

Breakdown of WACC Components

• Long-term bond rate: 3.4% – 3.9%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 1.34 – 1.47
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.7

What It Means for Investors

With a selected WACC of 6.2%, Nextpoint Acquisition Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.