FFF.CN
55 North Mining Inc
Price:  
0.04 
CAD
Volume:  
166,425.00
Canada | N/A
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FFF.CN WACC - Weighted Average Cost of Capital

The WACC of 55 North Mining Inc (FFF.CN) is 2.8%.

The Cost of Equity of 55 North Mining Inc (FFF.CN) is 2.70%.
The Cost of Debt of 55 North Mining Inc (FFF.CN) is 5.00%.

Range Selected
Cost of equity 2.00% - 3.40% 2.70%
Tax rate 0.70% - 1.30% 1.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 3.5% - 2.1% 2.8%
WACC

FFF.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -2.4 -2.4
Additional risk adjustments 12.5% 13.0%
Cost of equity 2.00% 3.40%
Tax rate 0.70% 1.30%
Debt/Equity ratio 0.01 0.01
Cost of debt 5.00% 5.00%
After-tax WACC 3.5% 2.1%
Selected WACC 2.8%

FFF.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 FFF.CN:

cost_of_equity (2.70%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-2.4) + risk_adjustments (12.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.