RDY.CN
Ready Set Gold Corp
Price:  
0.16 
CAD
Volume:  
800.00
Canada | N/A
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

RDY.CN WACC - Weighted Average Cost of Capital

The WACC of Ready Set Gold Corp (RDY.CN) is 6.0%.

The Cost of Equity of Ready Set Gold Corp (RDY.CN) is 10.10%.
The Cost of Debt of Ready Set Gold Corp (RDY.CN) is 5.00%.

Range Selected
Cost of equity 9.10% - 11.10% 10.10%
Tax rate 1.10% - 1.70% 1.40%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.8% - 6.1% 6.0%
WACC

RDY.CN WACC calculation

Category Low High
Long-term bond rate 3.6% 4.1%
Equity market risk premium 5.5% 6.5%
Adjusted beta 1.01 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.10% 11.10%
Tax rate 1.10% 1.70%
Debt/Equity ratio 4.09 4.09
Cost of debt 5.00% 5.00%
After-tax WACC 5.8% 6.1%
Selected WACC 6.0%

RDY.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 RDY.CN:

cost_of_equity (10.10%) = risk_free_rate (3.85%) + equity_risk_premium (6.00%) * adjusted_beta (1.01) + 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.