CSO.V WACC - Weighted Average Cost of Capital

The WACC of Corsa Coal Corp (CSO.V) is 9.4%.

The Cost of Equity of Corsa Coal Corp (CSO.V) is 13.90%.

The Cost of Debt of Corsa Coal Corp (CSO.V) is 8.20%.

	Range	Selected
Cost of equity	10.50% - 17.30%	13.90%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	7.00% - 9.40%	8.20%
WACC	7.5% - 11.4%	9.4%

WACC

CSO.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.3	2.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	17.30%

Tax rate	26.20%	27.00%
Debt/Equity ratio	1.31	1.31
Cost of debt	7.00%	9.40%

After-tax WACC	7.5%	11.4%


Selected WACC	9.4%

CSO.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 CSO.V:

cost_of_equity (13.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.3) + 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.