CMMC.TO WACC - Weighted Average Cost of Capital

The WACC of Copper Mountain Mining Corp (CMMC.TO) is 8.6%.

The Cost of Equity of Copper Mountain Mining Corp (CMMC.TO) is 11.35%.

The Cost of Debt of Copper Mountain Mining Corp (CMMC.TO) is 6.65%.

	Range	Selected
Cost of equity	9.10% - 13.60%	11.35%
Tax rate	25.80% - 35.60%	30.70%
Cost of debt	6.30% - 7.00%	6.65%
WACC	7.3% - 9.9%	8.6%

WACC

CMMC.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.16	1.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.10%	13.60%

Tax rate	25.80%	35.60%
Debt/Equity ratio	0.69	0.69
Cost of debt	6.30%	7.00%

After-tax WACC	7.3%	9.9%


Selected WACC	8.6%

CMMC.TO'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 CMMC.TO:

cost_of_equity (11.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.16) + 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.