ALCU.CN
Alpha Copper Corp
Price:  
0.40 
CAD
Volume:  
80,506.00
Canada | N/A
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ALCU.CN WACC - Weighted Average Cost of Capital

The WACC of Alpha Copper Corp (ALCU.CN) is 3.7%.

The Cost of Equity of Alpha Copper Corp (ALCU.CN) is 3.65%.
The Cost of Debt of Alpha Copper Corp (ALCU.CN) is 5.00%.

Range Selected
Cost of equity 3.30% - 4.00% 3.65%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.5% - 3.9% 3.7%
WACC

ALCU.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -0.27 -0.27
Additional risk adjustments 1.5% 2.0%
Cost of equity 3.30% 4.00%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 3.5% 3.9%
Selected WACC 3.7%

ALCU.CN'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 ALCU.CN:

cost_of_equity (3.65%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-0.27) + risk_adjustments (1.75%)

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