BRAS.CN
Brascan Gold Inc
Price:  
0.09 
CAD
Volume:  
23,480.00
Canada | N/A
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BRAS.CN WACC - Weighted Average Cost of Capital

The WACC of Brascan Gold Inc (BRAS.CN) is 9.3%.

The Cost of Equity of Brascan Gold Inc (BRAS.CN) is 15.00%.
The Cost of Debt of Brascan Gold Inc (BRAS.CN) is 5.00%.

Range Selected
Cost of equity 13.60% - 16.40% 15.00%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.6% - 10.0% 9.3%
WACC

BRAS.CN WACC calculation

Category Low High
Long-term bond rate 3.6% 4.1%
Equity market risk premium 5.5% 6.5%
Adjusted beta 1.82 1.82
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.60% 16.40%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 8.6% 10.0%
Selected WACC 9.3%

BRAS.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 BRAS.CN:

cost_of_equity (15.00%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (1.82) + 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.