GREN.CN
Madison Metals Inc
Price:  
0.28 
CAD
Volume:  
55,760.00
Canada | N/A
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GREN.CN WACC - Weighted Average Cost of Capital

The WACC of Madison Metals Inc (GREN.CN) is 20.8%.

The Cost of Equity of Madison Metals Inc (GREN.CN) is 36.95%.
The Cost of Debt of Madison Metals Inc (GREN.CN) is 5.00%.

Range Selected
Cost of equity 33.50% - 40.40% 36.95%
Tax rate 3.20% - 12.80% 8.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 19.2% - 22.4% 20.8%
WACC

GREN.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 5.95 5.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 33.50% 40.40%
Tax rate 3.20% 12.80%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 19.2% 22.4%
Selected WACC 20.8%

GREN.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 GREN.CN:

cost_of_equity (36.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (5.95) + 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.