AC.TO
Air Canada
Price:  
15.47 
CAD
Volume:  
814,386.00
Canada | Airlines
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

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 11.90%.
The Cost of Debt of Air Canada (AC.TO) is 5.85%.

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%
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 1.18 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%