CAPR.CN WACC - Weighted Average Cost of Capital

The WACC of Caprock Mining Corp (CAPR.CN) is 27.2%.

The Cost of Equity of Caprock Mining Corp (CAPR.CN) is 50.70%.

The Cost of Debt of Caprock Mining Corp (CAPR.CN) is 5.00%.

	Range	Selected
Cost of equity	46.00% - 55.40%	50.70%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	24.8% - 29.5%	27.2%

WACC

CAPR.CN WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	8.4	8.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	46.00%	55.40%

Tax rate	25.90%	26.50%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	24.8%	29.5%


Selected WACC	27.2%

CAPR.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 CAPR.CN:

cost_of_equity (50.70%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (8.4) + 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.