HRT.TO WACC - Weighted Average Cost of Capital

The WACC of Harte Gold Corp (HRT.TO) is 6.7%.

The Cost of Equity of Harte Gold Corp (HRT.TO) is 10.70%.

The Cost of Debt of Harte Gold Corp (HRT.TO) is 8.05%.

	Range	Selected
Cost of equity	7.70% - 13.70%	10.70%
Tax rate	26.50% - 26.50%	26.50%
Cost of debt	7.40% - 8.70%	8.05%
WACC	5.8% - 7.5%	6.7%

WACC

HRT.TO WACC calculation

Category	Low	High

Long-term bond rate	3.4%	3.9%
Equity market risk premium	4.7%	5.7%
Adjusted beta	0.92	1.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	13.70%

Tax rate	26.50%	26.50%
Debt/Equity ratio	5.45	5.45
Cost of debt	7.40%	8.70%

After-tax WACC	5.8%	7.5%


Selected WACC	6.7%

HRT.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 HRT.TO:

cost_of_equity (10.70%) = risk_free_rate (3.65%) + equity_risk_premium (5.20%) * adjusted_beta (0.92) + 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.