BCM.V WACC - Weighted Average Cost of Capital

The WACC of Bear Creek Mining Corp (BCM.V) is 7.7%.

The Cost of Equity of Bear Creek Mining Corp (BCM.V) is 15.40%.

The Cost of Debt of Bear Creek Mining Corp (BCM.V) is 5.50%.

	Range	Selected
Cost of equity	13.40% - 17.40%	15.40%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.3% - 9.1%	7.7%

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	1.87	2.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	17.40%

Tax rate	26.20%	27.00%
Debt/Equity ratio	2.09	2.09
Cost of debt	4.00%	7.00%

After-tax WACC	6.3%	9.1%


Selected WACC	7.7%

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 (15.40%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.87) + 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.