FENX.CN
FenixOro Gold Corp
Price:  
0.08 
CAD
Volume:  
38,145.00
Canada | N/A
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FENX.CN WACC - Weighted Average Cost of Capital

The WACC of FenixOro Gold Corp (FENX.CN) is 7.0%.

The Cost of Equity of FenixOro Gold Corp (FENX.CN) is 10.35%.
The Cost of Debt of FenixOro Gold Corp (FENX.CN) is 5.00%.

Range Selected
Cost of equity 7.00% - 13.70% 10.35%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.4% - 8.7% 7.0%
WACC

FENX.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.76 1.57
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 13.70%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.4% 8.7%
Selected WACC 7.0%

FENX.CN'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 FENX.CN:

cost_of_equity (10.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.76) + 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.