RKR.V
ROKMASTER Resources Corp
Price:  
0.03 
CAD
Volume:  
224,470
Canada | Metals & Mining

RKR.V WACC - Weighted Average Cost of Capital

The WACC of ROKMASTER Resources Corp (RKR.V) is 7.6%.

The Cost of Equity of ROKMASTER Resources Corp (RKR.V) is 11.55%.
The Cost of Debt of ROKMASTER Resources Corp (RKR.V) is 5%.

RangeSelected
Cost of equity9.9% - 13.2%11.55%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC6.8% - 8.4%7.6%
WACC

RKR.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta1.191.37
Additional risk adjustments0.0%0.5%
Cost of equity9.9%13.2%
Tax rate26.2%27.0%
Debt/Equity ratio
11
Cost of debt5.0%5.0%
After-tax WACC6.8%8.4%
Selected WACC7.6%

RKR.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 RKR.V:

cost_of_equity (11.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (1.19) + 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.