CP.TO
Canadian Pacific Railway Ltd
Price:  
112.81 
CAD
Volume:  
258,238.00
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 6.2%.

The Cost of Equity of Canadian Pacific Railway Ltd (CP.TO) is 6.85%.
The Cost of Debt of Canadian Pacific Railway Ltd (CP.TO) is 4.35%.

Range Selected
Cost of equity 5.30% - 8.40% 6.85%
Tax rate 22.00% - 22.90% 22.45%
Cost of debt 4.20% - 4.50% 4.35%
WACC 4.9% - 7.5% 6.2%
WACC

CP.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.41 0.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.30% 8.40%
Tax rate 22.00% 22.90%
Debt/Equity ratio 0.22 0.22
Cost of debt 4.20% 4.50%
After-tax WACC 4.9% 7.5%
Selected WACC 6.2%