The WACC of Algoma Central Corp (ALC.TO) is 7.0%.
Range | Selected | |
Cost of equity | 6.80% - 10.60% | 8.70% |
Tax rate | 15.70% - 15.80% | 15.75% |
Cost of debt | 4.90% - 5.70% | 5.30% |
WACC | 5.7% - 8.3% | 7.0% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.71 | 1.06 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.80% | 10.60% |
Tax rate | 15.70% | 15.80% |
Debt/Equity ratio | 0.65 | 0.65 |
Cost of debt | 4.90% | 5.70% |
After-tax WACC | 5.7% | 8.3% |
Selected WACC | 7.0% | |