MPXI.CN
MPX International Corp
Price:  
0.01 
CAD
Volume:  
5,001.00
Canada | Pharmaceuticals
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MPXI.CN WACC - Weighted Average Cost of Capital

The WACC of MPX International Corp (MPXI.CN) is 7.1%.

The Cost of Equity of MPX International Corp (MPXI.CN) is 10.80%.
The Cost of Debt of MPX International Corp (MPXI.CN) is 7.00%.

Range Selected
Cost of equity 5.40% - 16.20% 10.80%
Tax rate 1.00% - 1.50% 1.25%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.9% - 7.2% 7.1%
WACC

MPXI.CN WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta -0.24 1.4
Additional risk adjustments 3.5% 4.0%
Cost of equity 5.40% 16.20%
Tax rate 1.00% 1.50%
Debt/Equity ratio 27.06 27.06
Cost of debt 7.00% 7.00%
After-tax WACC 6.9% 7.2%
Selected WACC 7.1%

MPXI.CN'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 MPXI.CN:

cost_of_equity (10.80%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (-0.24) + risk_adjustments (3.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.