Trez Capital Senior Mortgage Investment Corp (TZS.TO) WACC Analysis

As of May 29, 2025, Trez Capital Senior Mortgage Investment Corp (TZS.TO) carries a Weighted Average Cost of Capital (WACC) of 7.0%. WACC reflects the blended rate Trez Capital Senior Mortgage Investment 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: 4.7% – 5.7%
• Adjusted beta: 1.19 – 1.3
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1

What It Means for Investors

With a selected WACC of 7.0%, Trez Capital Senior Mortgage Investment Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.