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 11.35%.

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

	Range	Selected
Cost of equity	9.20% - 13.50%	11.35%
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	1.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.20%	13.50%

Tax rate	14.70%	25.30%
Debt/Equity ratio	0.47	0.47
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 (11.35%) = 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.