FFF.CN WACC - Weighted Average Cost of Capital

The WACC of 55 North Mining Inc (FFF.CN) is 15.5%.

The Cost of Equity of 55 North Mining Inc (FFF.CN) is 15.55%.

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

	Range	Selected
Cost of equity	14.00% - 17.10%	15.55%
Tax rate	0.70% - 1.30%	1.00%
Cost of debt	5.00% - 5.00%	5.00%
WACC	14.0% - 17.1%	15.5%

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	2.13	2.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	17.10%

Tax rate	0.70%	1.30%
Debt/Equity ratio	0	0
Cost of debt	5.00%	5.00%

After-tax WACC	14.0%	17.1%


Selected WACC	15.5%

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 (15.55%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (2.13) + 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.