BJB.CN
Bond Resources Inc
Price:  
0.01 
CAD
Volume:  
1,010
Canada | Mining

BJB.CN WACC - Weighted Average Cost of Capital

The WACC of Bond Resources Inc (BJB.CN) is 4.8%.

The Cost of Equity of Bond Resources Inc (BJB.CN) is 6.6%.
The Cost of Debt of Bond Resources Inc (BJB.CN) is 5%.

RangeSelected
Cost of equity4.9% - 8.3%6.6%
Tax rate25.9% - 26.5%26.2%
Cost of debt5.0% - 5.0%5%
WACC4.2% - 5.5%4.8%
WACC

BJB.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.350.69
Additional risk adjustments0.0%0.5%
Cost of equity4.9%8.3%
Tax rate25.9%26.5%
Debt/Equity ratio
1.61.6
Cost of debt5.0%5.0%
After-tax WACC4.2%5.5%
Selected WACC4.8%

BJB.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 BJB.CN:

cost_of_equity (6.60%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.35) + 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.