FNR.V WACC - Weighted Average Cost of Capital
The WACC of 49 North Resources Inc (FNR.V) is 4.7%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.6% | 6.6% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.3% - 5.0% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.33 | 0.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.6% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1.84 | 1.84 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.3% | 5.0% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FNR.V | 49 North Resources Inc | 1.84 | 0.3 | 0.13 |
| CAPP | Capstone Financial Group Inc | 0.01 | 0.52 | 0.52 |
| CGRA | Cgrowth Capital Inc | 0.01 | 0.26 | 0.26 |
| FRTD | Fortitude Group Inc | 769.54 | 0.03 | 0 |
| GLAE | Glassbridge Enterprises Inc | 5.87 | 0.23 | 0.04 |
| IDEA | Aeon Ventures Inc | 0.28 | -1.34 | -1.12 |
| PXI.V | Planet Ventures Inc | 0.14 | -0.3 | -0.27 |
| SUNS | SLR Senior Investment Corp | 1.42 | 0.99 | 0.49 |
| WP.V | Western Pacific Trust Co | 0.23 | 0.78 | 0.66 |
| Low | High | |
| Unlevered beta | 0.06 | 0.23 |
| Relevered beta | 0 | 0.18 |
| Adjusted relevered beta | 0.33 | 0.45 |
FNR.V'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 FNR.V:
cost_of_equity (6.60%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.