The WACC of Air Canada (AC.TO) is 7.2%.
Range | Selected | |
Cost of equity | 9.20% - 14.60% | 11.90% |
Tax rate | 7.40% - 10.30% | 8.85% |
Cost of debt | 4.90% - 6.80% | 5.85% |
WACC | 5.9% - 8.5% | 7.2% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 1.18 | 1.71 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.20% | 14.60% |
Tax rate | 7.40% | 10.30% |
Debt/Equity ratio | 2.52 | 2.52 |
Cost of debt | 4.90% | 6.80% |
After-tax WACC | 5.9% | 8.5% |
Selected WACC | 7.2% | |