MINF.TO WACC - Weighted Average Cost of Capital

The WACC of Middlefield Sustainable Infrastructure Dividend ETF (MINF.TO) is 18.4%.

The Cost of Equity of Middlefield Sustainable Infrastructure Dividend ETF (MINF.TO) is 31.80%.

The Cost of Debt of Middlefield Sustainable Infrastructure Dividend ETF (MINF.TO) is 5.00%.

	Range	Selected
Cost of equity	28.80% - 34.80%	31.80%
Tax rate	0.40% - 0.40%	0.40%
Cost of debt	5.00% - 5.00%	5.00%
WACC	16.9% - 19.9%	18.4%

WACC

MINF.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	5.03	5.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.80%	34.80%

Tax rate	0.40%	0.40%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	16.9%	19.9%


Selected WACC	18.4%

MINF.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 MINF.TO:

cost_of_equity (31.80%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (5.03) + 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.