ARX.TO
ARC Resources Ltd
Price:  
23.18 
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 7.0%.

The Cost of Equity of ARC Resources Ltd (ARX.TO) is 7.40%.
The Cost of Debt of ARC Resources Ltd (ARX.TO) is 5.55%.

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%
WACC

ARX.TO WACC calculation

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%