AC.TO
Air Canada
Price:  
16.15 
CAD
Volume:  
814,386.00
Canada | Airlines
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AC.TO WACC - Weighted Average Cost of Capital

The WACC of Air Canada (AC.TO) is 7.3%.

The Cost of Equity of Air Canada (AC.TO) is 11.65%.
The Cost of Debt of Air Canada (AC.TO) is 6.00%.

Range Selected
Cost of equity 9.70% - 13.60% 11.65%
Tax rate 7.40% - 10.30% 8.85%
Cost of debt 4.90% - 7.10% 6.00%
WACC 6.1% - 8.6% 7.3%
WACC

AC.TO WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.25 1.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.70% 13.60%
Tax rate 7.40% 10.30%
Debt/Equity ratio 2.28 2.28
Cost of debt 4.90% 7.10%
After-tax WACC 6.1% 8.6%
Selected WACC 7.3%