WPN.CN WACC - Weighted Average Cost of Capital
The WACC of First Responder Technologies Inc (WPN.CN) is 3.9%.
| Range | Selected | |
| Cost of equity | 3.0% - 5.0% | 4% |
| Tax rate | 25.9% - 26.5% | 26.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.2% - 4.6% | 3.9% |
| Category | Low | High |
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | -0.04 | 0.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 3.0% | 5.0% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 0.42 | 0.42 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.2% | 4.6% |
| Selected WACC | 3.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| WPN.CN | First Responder Technologies Inc | 0.42 | -0.86 | -0.65 |
| DPUI | Discount Print Usa Inc | 1.06 | 2.21 | 1.24 |
| SCAN.V | Liberty Defense Holdings Ltd | 0.25 | 0.15 | 0.13 |
| VRT.CN | Veritas Pharma Inc | 0.03 | -0.17 | -0.17 |
| Low | High | |
| Unlevered beta | -0.11 | 0.07 |
| Relevered beta | -0.55 | -0.3 |
| Adjusted relevered beta | -0.04 | 0.13 |
WPN.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 WPN.CN:
cost_of_equity (4.00%) = risk_free_rate (3.55%) + equity_risk_premium (5.60%) * adjusted_beta (-0.04) + 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.