HCG.TO
Home Capital Group Inc
Price:  
44.26 
CAD
Volume:  
185,572.00
Canada | Thrifts & Mortgage Finance
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HCG.TO WACC - Weighted Average Cost of Capital

The WACC of Home Capital Group Inc (HCG.TO) is 5.2%.

The Cost of Equity of Home Capital Group Inc (HCG.TO) is 9.25%.
The Cost of Debt of Home Capital Group Inc (HCG.TO) is 5.00%.

Range Selected
Cost of equity 7.60% - 10.90% 9.25%
Tax rate 26.60% - 26.70% 26.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.7% - 5.6% 5.2%
WACC

HCG.TO WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.85 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.90%
Tax rate 26.60% 26.70%
Debt/Equity ratio 2.76 2.76
Cost of debt 5.00% 5.00%
After-tax WACC 4.7% 5.6%
Selected WACC 5.2%