CZO.V WACC - Weighted Average Cost of Capital

The WACC of Ceapro Inc (CZO.V) is 6.2%.

The Cost of Equity of Ceapro Inc (CZO.V) is 6.25%.

The Cost of Debt of Ceapro Inc (CZO.V) is 5.90%.

	Range	Selected
Cost of equity	5.30% - 7.20%	6.25%
Tax rate	1.30% - 9.30%	5.30%
Cost of debt	4.80% - 7.00%	5.90%
WACC	5.2% - 7.1%	6.2%

WACC

CZO.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	0.28	0.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	7.20%

Tax rate	1.30%	9.30%
Debt/Equity ratio	0.13	0.13
Cost of debt	4.80%	7.00%

After-tax WACC	5.2%	7.1%


Selected WACC	6.2%

CZO.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 CZO.V:

cost_of_equity (6.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.28) + 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.