CDC.V
Cadillac Ventures Inc
Price:  
0.05 
CAD
Volume:  
38,840
Canada | Metals & Mining

CDC.V WACC - Weighted Average Cost of Capital

The WACC of Cadillac Ventures Inc (CDC.V) is 7.6%.

The Cost of Equity of Cadillac Ventures Inc (CDC.V) is 8.55%.
The Cost of Debt of Cadillac Ventures Inc (CDC.V) is 5%.

RangeSelected
Cost of equity6.6% - 10.5%8.55%
Tax rate27.0% - 27.0%27%
Cost of debt5.0% - 5.0%5%
WACC6.1% - 9.2%7.6%
WACC

CDC.V WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium4.7%5.7%
Adjusted beta0.731.1
Additional risk adjustments0.0%0.5%
Cost of equity6.6%10.5%
Tax rate27.0%27.0%
Debt/Equity ratio
0.230.23
Cost of debt5.0%5.0%
After-tax WACC6.1%9.2%
Selected WACC7.6%

CDC.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 CDC.V:

cost_of_equity (8.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (0.73) + 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.