Tuscan Holdings Corp (THCBU) WACC Analysis

As of June 17, 2025, Tuscan Holdings Corp (THCBU) carries a Weighted Average Cost of Capital (WACC) of 8.2%. WACC reflects the blended rate Tuscan Holdings Corp must pay to both equity and debt holders.

Within that, the cost of equity is 7.1%, the cost of debt is 5.0%, and the effective tax rate is 19.2%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 0.92 – 0.98
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0

What It Means for Investors

With a selected WACC of 8.2%, Tuscan Holdings Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.