FLYY.CN
Media Central Corporation Inc
Price:  
0.01 
CAD
Volume:  
365,300
Canada | Interactive Media & Services

FLYY.CN WACC - Weighted Average Cost of Capital

The WACC of Media Central Corporation Inc (FLYY.CN) is 5.7%.

The Cost of Equity of Media Central Corporation Inc (FLYY.CN) is 6.1%.
The Cost of Debt of Media Central Corporation Inc (FLYY.CN) is 4.25%.

RangeSelected
Cost of equity5.0% - 7.2%6.1%
Tax rate0.5% - 0.9%0.7%
Cost of debt4.0% - 4.5%4.25%
WACC4.8% - 6.6%5.7%
WACC

FLYY.CN WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium5.1%6.1%
Adjusted beta0.170.33
Additional risk adjustments1.0%1.5%
Cost of equity5.0%7.2%
Tax rate0.5%0.9%
Debt/Equity ratio
0.260.26
Cost of debt4.0%4.5%
After-tax WACC4.8%6.6%
Selected WACC5.7%

FLYY.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 FLYY.CN:

cost_of_equity (6.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.17) + risk_adjustments (1.25%)

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