MOON.V
Blue Moon Zinc Corp
Price:  
3.03 
CAD
Volume:  
7,500
Canada | Metals & Mining

MOON.V WACC - Weighted Average Cost of Capital

The WACC of Blue Moon Zinc Corp (MOON.V) is 7.6%.

The Cost of Equity of Blue Moon Zinc Corp (MOON.V) is 11.45%.
The Cost of Debt of Blue Moon Zinc Corp (MOON.V) is 5%.

RangeSelected
Cost of equity8.9% - 14.0%11.45%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC6.3% - 8.8%7.6%
WACC

MOON.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.991.51
Additional risk adjustments0.0%0.5%
Cost of equity8.9%14.0%
Tax rate26.2%27.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.3%8.8%
Selected WACC7.6%

MOON.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 MOON.V:

cost_of_equity (11.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.99) + 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.