MND.TO
Mandalay Resources Corp
Price:  
5.13 
CAD
Volume:  
42,261.00
Canada | Metals & Mining
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MND.TO WACC - Weighted Average Cost of Capital

The WACC of Mandalay Resources Corp (MND.TO) is 10.0%.

The Cost of Equity of Mandalay Resources Corp (MND.TO) is 10.10%.
The Cost of Debt of Mandalay Resources Corp (MND.TO) is 4.95%.

Range Selected
Cost of equity 8.80% - 11.40% 10.10%
Tax rate 37.60% - 43.40% 40.50%
Cost of debt 4.00% - 5.90% 4.95%
WACC 8.7% - 11.2% 10.0%
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 1.1 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 11.40%
Tax rate 37.60% 43.40%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 5.90%
After-tax WACC 8.7% 11.2%
Selected WACC 10.0%

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 (10.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.1) + 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.