MARY.CN
Mary Agrotechnologies Inc.
Price:  
0.09 
CAD
Volume:  
5,000.00
Canada | N/A
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MARY.CN WACC - Weighted Average Cost of Capital

The WACC of Mary Agrotechnologies Inc. (MARY.CN) is 7.4%.

The Cost of Equity of Mary Agrotechnologies Inc. (MARY.CN) is 11.20%.
The Cost of Debt of Mary Agrotechnologies Inc. (MARY.CN) is 5.00%.

Range Selected
Cost of equity 3.30% - 19.10% 11.20%
Tax rate 25.90% - 26.50% 26.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 11.4% - 3.5% 7.4%
WACC

MARY.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -16.78 -16.78
Additional risk adjustments 101.5% 102.0%
Cost of equity 3.30% 19.10%
Tax rate 25.90% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 11.4% 3.5%
Selected WACC 7.4%

MARY.CN'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 MARY.CN:

cost_of_equity (11.20%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-16.78) + risk_adjustments (101.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.