MND.TO WACC - Weighted Average Cost of Capital

The WACC of Mandalay Resources Corp (MND.TO) is 9.8%.

The Cost of Equity of Mandalay Resources Corp (MND.TO) is 9.95%.

The Cost of Debt of Mandalay Resources Corp (MND.TO) is 4.95%.

	Range	Selected
Cost of equity	8.60% - 11.30%	9.95%
Tax rate	37.60% - 43.40%	40.50%
Cost of debt	4.00% - 5.90%	4.95%
WACC	8.5% - 11.1%	9.8%

WACC

MND.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.08	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.60%	11.30%

Tax rate	37.60%	43.40%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	5.90%

After-tax WACC	8.5%	11.1%


Selected WACC	9.8%

MND.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 MND.TO:

cost_of_equity (9.95%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.08) + 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.