The WACC of Diversified Royalty Corp (DIV.TO) is 7.0%.
Range | Selected | |
Cost of equity | 6.90% - 9.60% | 8.25% |
Tax rate | 27.70% - 28.40% | 28.05% |
Cost of debt | 5.50% - 6.20% | 5.85% |
WACC | 6.0% - 8.0% | 7.0% |
Category | Low | High |
Long-term bond rate | 3.3% | 3.8% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.71 | 0.88 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.90% | 9.60% |
Tax rate | 27.70% | 28.40% |
Debt/Equity ratio | 0.44 | 0.44 |
Cost of debt | 5.50% | 6.20% |
After-tax WACC | 6.0% | 8.0% |
Selected WACC | 7.0% | |