TPC.V
Tenth Avenue Petroleum Corp
Price:  
0.09 
CAD
Volume:  
48,000
Canada | Oil, Gas & Consumable Fuels

TPC.V WACC - Weighted Average Cost of Capital

The WACC of Tenth Avenue Petroleum Corp (TPC.V) is 6.1%.

The Cost of Equity of Tenth Avenue Petroleum Corp (TPC.V) is 6.2%.
The Cost of Debt of Tenth Avenue Petroleum Corp (TPC.V) is 5%.

RangeSelected
Cost of equity5.5% - 6.9%6.2%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.0% - 5.0%5%
WACC5.5% - 6.7%6.1%
WACC

TPC.V WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium5.1%6.1%
Adjusted beta0.330.33
Additional risk adjustments0.0%0.5%
Cost of equity5.5%6.9%
Tax rate26.2%27.0%
Debt/Equity ratio
0.050.05
Cost of debt5.0%5.0%
After-tax WACC5.5%6.7%
Selected WACC6.1%

TPC.V WACC - Detailed calculations of Beta

LowHigh
Unlevered beta00.01
Relevered beta00
Adjusted relevered beta0.330.33

TPC.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 TPC.V:

cost_of_equity (6.20%) = risk_free_rate (4.15%) + equity_risk_premium (5.60%) * adjusted_beta (0.33) + 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.