CP.TO
Canadian Pacific Railway Ltd
Price:  
106.48 
CAD
Volume:  
566,938.00
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 7.0%.

The Cost of Equity of Canadian Pacific Railway Ltd (CP.TO) is 7.85%.
The Cost of Debt of Canadian Pacific Railway Ltd (CP.TO) is 4.50%.

Range Selected
Cost of equity 6.10% - 9.60% 7.85%
Tax rate 22.00% - 22.90% 22.45%
Cost of debt 4.20% - 4.80% 4.50%
WACC 5.6% - 8.5% 7.0%
WACC

CP.TO WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.55 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 9.60%
Tax rate 22.00% 22.90%
Debt/Equity ratio 0.23 0.23
Cost of debt 4.20% 4.80%
After-tax WACC 5.6% 8.5%
Selected WACC 7.0%