AFM.V WACC - Weighted Average Cost of Capital

The WACC of Alphamin Resources Corp (AFM.V) is 10.0%.

The Cost of Equity of Alphamin Resources Corp (AFM.V) is 10.25%.

The Cost of Debt of Alphamin Resources Corp (AFM.V) is 13.35%.

	Range	Selected
Cost of equity	8.60% - 11.90%	10.25%
Tax rate	39.30% - 44.30%	41.80%
Cost of debt	4.50% - 22.20%	13.35%
WACC	8.1% - 11.9%	10.0%

WACC

AFM.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.93	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	11.90%

Tax rate	39.30%	44.30%
Debt/Equity ratio	0.09	0.09
Cost of debt	4.50%	22.20%

After-tax WACC	8.1%	11.9%


Selected WACC	10.0%

AFM.V's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for AFM.V:

cost_of_equity (10.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.93) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.