AC.TO
Air Canada
Price:  
25.45 
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 10.20%.
The Cost of Debt of Air Canada (AC.TO) is 5.85%.

Range Selected
Cost of equity 8.50% - 11.90% 10.20%
Tax rate 7.40% - 10.30% 8.85%
Cost of debt 4.90% - 6.80% 5.85%
WACC 6.2% - 8.4% 7.3%
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 1.04 1.27
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.50% 11.90%
Tax rate 7.40% 10.30%
Debt/Equity ratio 1.45 1.45
Cost of debt 4.90% 6.80%
After-tax WACC 6.2% 8.4%
Selected WACC 7.3%