ERE.UN.TO
European Residential REIT
Price:  
2.73 
CAD
Volume:  
33,300.00
Canada | Equity Real Estate Investment Trusts (REITs)
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ERE.UN.TO WACC - Weighted Average Cost of Capital

The WACC of European Residential REIT (ERE.UN.TO) is 6.1%.

The Cost of Equity of European Residential REIT (ERE.UN.TO) is 16.75%.
The Cost of Debt of European Residential REIT (ERE.UN.TO) is 6.20%.

Range Selected
Cost of equity 13.00% - 20.50% 16.75%
Tax rate 24.40% - 33.80% 29.10%
Cost of debt 4.00% - 8.40% 6.20%
WACC 4.5% - 7.7% 6.1%
WACC

ERE.UN.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1.93 2.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.00% 20.50%
Tax rate 24.40% 33.80%
Debt/Equity ratio 5.81 5.81
Cost of debt 4.00% 8.40%
After-tax WACC 4.5% 7.7%
Selected WACC 6.1%