IFR.V
International Frontier Resources Corp
Price:  
0.04 
CAD
Volume:  
9,010.00
Canada | Oil, Gas & Consumable Fuels
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

IFR.V WACC - Weighted Average Cost of Capital

The WACC of International Frontier Resources Corp (IFR.V) is 7.5%.

The Cost of Equity of International Frontier Resources Corp (IFR.V) is 7.65%.
The Cost of Debt of International Frontier Resources Corp (IFR.V) is 5.00%.

Range Selected
Cost of equity 5.00% - 10.30% 7.65%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.0% - 10.0% 7.5%
WACC

IFR.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.23 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.00% 10.30%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.06 0.06
Cost of debt 5.00% 5.00%
After-tax WACC 5.0% 10.0%
Selected WACC 7.5%

IFR.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 IFR.V:

cost_of_equity (7.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.23) + 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.