The WACC of ARC Resources Ltd (ARX.TO) is 7.0%.
Range | Selected | |
Cost of equity | 6.30% - 8.50% | 7.40% |
Tax rate | 22.60% - 24.60% | 23.60% |
Cost of debt | 4.00% - 7.10% | 5.55% |
WACC | 5.9% - 8.1% | 7.0% |
Category | Low | High |
Long-term bond rate | 3.3% | 3.8% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.59 | 0.69 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.30% | 8.50% |
Tax rate | 22.60% | 24.60% |
Debt/Equity ratio | 0.16 | 0.16 |
Cost of debt | 4.00% | 7.10% |
After-tax WACC | 5.9% | 8.1% |
Selected WACC | 7.0% | |