CDC.V
Cadillac Ventures Inc
Price:  
0.05 
CAD
Volume:  
38,840.00
Canada | Metals & Mining
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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 5.00%.

Range Selected
Cost of equity 6.60% - 10.50% 8.55%
Tax rate 27.00% - 27.00% 27.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.1% - 9.2% 7.6%
WACC

CDC.V WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.73 1.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 10.50%
Tax rate 27.00% 27.00%
Debt/Equity ratio 0.23 0.23
Cost of debt 5.00% 5.00%
After-tax WACC 6.1% 9.2%
Selected WACC 7.6%

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.