III.TO
Imperial Metals Corp
Price:  
4.77 
CAD
Volume:  
27,657.00
Canada | Metals & Mining
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III.TO WACC - Weighted Average Cost of Capital

The WACC of Imperial Metals Corp (III.TO) is 11.1%.

The Cost of Equity of Imperial Metals Corp (III.TO) is 11.30%.
The Cost of Debt of Imperial Metals Corp (III.TO) is 13.95%.

Range Selected
Cost of equity 9.20% - 13.40% 11.30%
Tax rate 14.70% - 25.30% 20.00%
Cost of debt 4.20% - 23.70% 13.95%
WACC 7.4% - 14.8% 11.1%
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 1.19 1.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 13.40%
Tax rate 14.70% 25.30%
Debt/Equity ratio 0.48 0.48
Cost of debt 4.20% 23.70%
After-tax WACC 7.4% 14.8%
Selected WACC 11.1%

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 (11.30%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.19) + 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.