MINE.V
Inomin Mines Inc
Price:  
0.04 
CAD
Volume:  
60,000
Canada | Mining

MINE.V WACC - Weighted Average Cost of Capital

The WACC of Inomin Mines Inc (MINE.V) is 7.8%.

The Cost of Equity of Inomin Mines Inc (MINE.V) is 11.95%.
The Cost of Debt of Inomin Mines Inc (MINE.V) is 5%.

RangeSelected
Cost of equity10.1% - 13.8%11.95%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC6.9% - 8.7%7.8%
WACC

MINE.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta1.231.47
Additional risk adjustments0.0%0.5%
Cost of equity10.1%13.8%
Tax rate26.2%27.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.9%8.7%
Selected WACC7.8%

MINE.V WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.851.22
Relevered beta1.341.7
Adjusted relevered beta1.231.47

MINE.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 MINE.V:

cost_of_equity (11.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.23) + 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.