AC.TO
Air Canada
Price:  
15.25 
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 7.2%.

The Cost of Equity of Air Canada (AC.TO) is 11.75%.
The Cost of Debt of Air Canada (AC.TO) is 5.85%.

Range Selected
Cost of equity 8.70% - 14.80% 11.75%
Tax rate 7.40% - 10.30% 8.85%
Cost of debt 4.90% - 6.80% 5.85%
WACC 5.7% - 8.6% 7.2%
WACC

AC.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.09 1.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 14.80%
Tax rate 7.40% 10.30%
Debt/Equity ratio 2.5 2.5
Cost of debt 4.90% 6.80%
After-tax WACC 5.7% 8.6%
Selected WACC 7.2%