III.TO WACC - Weighted Average Cost of Capital

The WACC of Imperial Metals Corp (III.TO) is 11.6%.

The Cost of Equity of Imperial Metals Corp (III.TO) is 12.10%.

The Cost of Debt of Imperial Metals Corp (III.TO) is 14.15%.

	Range	Selected
Cost of equity	9.00% - 15.20%	12.10%
Tax rate	14.70% - 25.30%	20.00%
Cost of debt	4.60% - 23.70%	14.15%
WACC	7.0% - 16.2%	11.6%

WACC

III.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.15	1.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.00%	15.20%

Tax rate	14.70%	25.30%
Debt/Equity ratio	0.64	0.64
Cost of debt	4.60%	23.70%

After-tax WACC	7.0%	16.2%


Selected WACC	11.6%

III.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 III.TO:

cost_of_equity (12.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.15) + 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.