The WACC of Air Canada (AC.TO) is 7.2%.
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% |
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% | |