BCM.V WACC - Weighted Average Cost of Capital

The WACC of Bear Creek Mining Corp (BCM.V) is 9.0%.

The Cost of Equity of Bear Creek Mining Corp (BCM.V) is 17.05%.

The Cost of Debt of Bear Creek Mining Corp (BCM.V) is 5.60%.

	Range	Selected
Cost of equity	15.00% - 19.10%	17.05%
Tax rate	0.80% - 2.10%	1.45%
Cost of debt	4.20% - 7.00%	5.60%
WACC	7.5% - 10.6%	9.0%

WACC

BCM.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	2.18	2.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.00%	19.10%

Tax rate	0.80%	2.10%
Debt/Equity ratio	2.26	2.26
Cost of debt	4.20%	7.00%

After-tax WACC	7.5%	10.6%


Selected WACC	9.0%

BCM.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 BCM.V:

cost_of_equity (17.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (2.18) + 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.