CP.TO
Canadian Pacific Railway Ltd
Price:  
114.79 
CAD
Volume:  
1,468,585.00
Canada | Road & Rail
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CP.TO WACC - Weighted Average Cost of Capital

The WACC of Canadian Pacific Railway Ltd (CP.TO) is 7.4%.

The Cost of Equity of Canadian Pacific Railway Ltd (CP.TO) is 8.10%.
The Cost of Debt of Canadian Pacific Railway Ltd (CP.TO) is 4.75%.

Range Selected
Cost of equity 6.30% - 9.90% 8.10%
Tax rate 22.00% - 22.90% 22.45%
Cost of debt 4.40% - 5.10% 4.75%
WACC 5.9% - 8.9% 7.4%
WACC

CP.TO WACC calculation

Category Low High
Long-term bond rate 3.6% 4.1%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.54 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 9.90%
Tax rate 22.00% 22.90%
Debt/Equity ratio 0.2 0.2
Cost of debt 4.40% 5.10%
After-tax WACC 5.9% 8.9%
Selected WACC 7.4%