IRI.V WACC - Weighted Average Cost of Capital
The WACC of Iemr Resources Inc (IRI.V) is 7.1%.
| Range | Selected | |
| Cost of equity | 9.0% - 12.0% | 10.5% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.3% - 7.8% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1 | 1.17 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.0% | 12.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.3% | 7.8% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IRI.V | Iemr Resources Inc | 1.11 | -0.88 | -0.49 |
| CME.CN | Canadian Metals Inc | 0.2 | 0.56 | 0.49 |
| CZ.H.V | Cassius Ventures Ltd | 0.5 | 0.87 | 0.64 |
| GGLD.CN | General Gold Resources Inc | 0.14 | 1.23 | 1.11 |
| MHI.V | Mineral Hill Industries Ltd | 0.01 | -1.66 | -1.66 |
| VCV.V | Vatic Ventures Corp | 0.21 | 0.99 | 0.86 |
| Low | High | |
| Unlevered beta | 0.49 | 0.64 |
| Relevered beta | 1 | 1.25 |
| Adjusted relevered beta | 1 | 1.17 |
IRI.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 IRI.V:
cost_of_equity (10.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1) + 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.