The WACC of Canadian Pacific Railway Ltd (CP.TO) is 7.6%.
Range | Selected | |
Cost of equity | 7.30% - 9.80% | 8.55% |
Tax rate | 22.00% - 22.90% | 22.45% |
Cost of debt | 4.20% - 4.50% | 4.35% |
WACC | 6.6% - 8.7% | 7.6% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.81 | 0.92 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.30% | 9.80% |
Tax rate | 22.00% | 22.90% |
Debt/Equity ratio | 0.21 | 0.21 |
Cost of debt | 4.20% | 4.50% |
After-tax WACC | 6.6% | 8.7% |
Selected WACC | 7.6% | |