Z.V
Zinc One Resources Inc
Price:  
0.36 
CAD
Volume:  
3,960
Canada | Metals & Mining

Z.V WACC - Weighted Average Cost of Capital

The WACC of Zinc One Resources Inc (Z.V) is 9.1%.

The Cost of Equity of Zinc One Resources Inc (Z.V) is 9.85%.
The Cost of Debt of Zinc One Resources Inc (Z.V) is 5%.

RangeSelected
Cost of equity8.3% - 11.4%9.85%
Tax rate27.0% - 27.0%27%
Cost of debt5.0% - 5.0%5%
WACC7.8% - 10.4%9.1%
WACC

Z.V WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium4.7%5.7%
Adjusted beta1.091.25
Additional risk adjustments0.0%0.5%
Cost of equity8.3%11.4%
Tax rate27.0%27.0%
Debt/Equity ratio
0.130.13
Cost of debt5.0%5.0%
After-tax WACC7.8%10.4%
Selected WACC9.1%

Z.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 Z.V:

cost_of_equity (9.85%) = risk_free_rate (3.45%) + equity_risk_premium (5.20%) * adjusted_beta (1.09) + 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.