The WACC of Hydro One Ltd (H.TO) is 5.3%.
Range | Selected | |
Cost of equity | 5.20% - 7.30% | 6.25% |
Tax rate | 14.90% - 17.80% | 16.35% |
Cost of debt | 4.00% - 4.50% | 4.25% |
WACC | 4.6% - 6.0% | 5.3% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.31 | 0.43 |
Additional risk adjustments | 0.5% | 1.0% |
Cost of equity | 5.20% | 7.30% |
Tax rate | 14.90% | 17.80% |
Debt/Equity ratio | 0.56 | 0.56 |
Cost of debt | 4.00% | 4.50% |
After-tax WACC | 4.6% | 6.0% |
Selected WACC | 5.3% | |