GBAR.TO
Monarch Mining Corp
Price:  
0.01 
CAD
Volume:  
183,836.00
Canada | Metals & Mining
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GBAR.TO WACC - Weighted Average Cost of Capital

The WACC of Monarch Mining Corp (GBAR.TO) is 8.4%.

The Cost of Equity of Monarch Mining Corp (GBAR.TO) is 48.35%.
The Cost of Debt of Monarch Mining Corp (GBAR.TO) is 5.00%.

Range Selected
Cost of equity 41.90% - 54.80% 48.35%
Tax rate 4.20% - 8.30% 6.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.9% - 8.8% 8.4%
WACC

GBAR.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 7.59 8.29
Additional risk adjustments 0.0% 0.5%
Cost of equity 41.90% 54.80%
Tax rate 4.20% 8.30%
Debt/Equity ratio 10.89 10.89
Cost of debt 5.00% 5.00%
After-tax WACC 7.9% 8.8%
Selected WACC 8.4%

GBAR.TO'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 GBAR.TO:

cost_of_equity (48.35%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (7.59) + 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.