MXMG
Maxima Group Inc
Price:  
1.01 
USD
Volume:  
7,220
United States | Arts, Entertainment, and Recreation

MXMG WACC - Weighted Average Cost of Capital

The WACC of Maxima Group Inc (MXMG) is 5.8%.

The Cost of Equity of Maxima Group Inc (MXMG) is 8%.
The Cost of Debt of Maxima Group Inc (MXMG) is 5%.

RangeSelected
Cost of equity4.8% - 11.2%8%
Tax rate27.0% - 27.0%27%
Cost of debt5.0% - 5.0%5%
WACC4.2% - 7.4%5.8%
WACC

MXMG WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium4.2%5.2%
Adjusted beta0.391.35
Additional risk adjustments0.0%0.5%
Cost of equity4.8%11.2%
Tax rate27.0%27.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC4.2%7.4%
Selected WACC5.8%

MXMG'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 MXMG:

cost_of_equity (8.00%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (0.39) + 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.