DNT.TO WACC - Weighted Average Cost of Capital

The WACC of Candente Copper Corp (DNT.TO) is 8.1%.

The Cost of Equity of Candente Copper Corp (DNT.TO) is 8.45%.

The Cost of Debt of Candente Copper Corp (DNT.TO) is 5.00%.

	Range	Selected
Cost of equity	7.30% - 9.60%	8.45%
Tax rate	25.90% - 26.50%	26.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	7.1% - 9.2%	8.1%

WACC

DNT.TO WACC calculation

Category	Low	High

Long-term bond rate	3.6%	4.1%
Equity market risk premium	5.5%	6.5%
Adjusted beta	0.68	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	9.60%

Tax rate	25.90%	26.50%
Debt/Equity ratio	0.08	0.08
Cost of debt	5.00%	5.00%

After-tax WACC	7.1%	9.2%


Selected WACC	8.1%

DNT.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 DNT.TO:

cost_of_equity (8.45%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (0.68) + 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.