IZ.V
International Zeolite Corp
Price:  
0.01 
CAD
Volume:  
37,000.00
Canada | N/A
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IZ.V WACC - Weighted Average Cost of Capital

The WACC of International Zeolite Corp (IZ.V) is 5.7%.

The Cost of Equity of International Zeolite Corp (IZ.V) is 11.70%.
The Cost of Debt of International Zeolite Corp (IZ.V) is 5.50%.

Range Selected
Cost of equity 7.30% - 16.10% 11.70%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 7.00% 5.50%
WACC 3.9% - 7.5% 5.7%
WACC

IZ.V WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.67 1.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 16.10%
Tax rate 26.20% 27.00%
Debt/Equity ratio 3.63 3.63
Cost of debt 4.00% 7.00%
After-tax WACC 3.9% 7.5%
Selected WACC 5.7%

IZ.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 IZ.V:

cost_of_equity (11.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.67) + 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.