ROK.V WACC - Weighted Average Cost of Capital

The WACC of ROK Resources Inc (ROK.V) is 7.5%.

The Cost of Equity of ROK Resources Inc (ROK.V) is 8.05%.

The Cost of Debt of ROK Resources Inc (ROK.V) is 6.10%.

	Range	Selected
Cost of equity	4.70% - 11.40%	8.05%
Tax rate	1.20% - 4.20%	2.70%
Cost of debt	6.10% - 6.10%	6.10%
WACC	5.1% - 9.9%	7.5%

WACC

ROK.V WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	5.1%	6.1%
Adjusted beta	-0.03	0.91

Additional risk adjustments	1.0%	1.5%
Cost of equity	4.70%	11.40%

Tax rate	1.20%	4.20%
Debt/Equity ratio	0.37	0.37
Cost of debt	6.10%	6.10%

After-tax WACC	5.1%	9.9%


Selected WACC	7.5%

ROK.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 ROK.V:

cost_of_equity (8.05%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (-0.03) + risk_adjustments (1.25%)

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