ARX.TO
ARC Resources Ltd
Price:  
24.89 
CAD
Volume:  
453,794.00
Canada | Oil, Gas & Consumable Fuels
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ARX.TO WACC - Weighted Average Cost of Capital

The WACC of ARC Resources Ltd (ARX.TO) is 8.1%.

The Cost of Equity of ARC Resources Ltd (ARX.TO) is 8.70%.
The Cost of Debt of ARC Resources Ltd (ARX.TO) is 5.55%.

Range Selected
Cost of equity 7.30% - 10.10% 8.70%
Tax rate 22.60% - 24.60% 23.60%
Cost of debt 4.00% - 7.10% 5.55%
WACC 6.8% - 9.5% 8.1%
WACC

ARX.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.82 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 10.10%
Tax rate 22.60% 24.60%
Debt/Equity ratio 0.15 0.15
Cost of debt 4.00% 7.10%
After-tax WACC 6.8% 9.5%
Selected WACC 8.1%