The WACC of American Hotel Income Properties REIT LP (HOT.UN.TO) is 6.6%.
Range | Selected | |
Cost of equity | 11.50% - 23.30% | 17.40% |
Tax rate | 9.90% - 15.60% | 12.75% |
Cost of debt | 4.00% - 9.60% | 6.80% |
WACC | 4.1% - 9.0% | 6.6% |
Category | Low | High |
Long-term bond rate | 3.6% | 4.1% |
Equity market risk premium | 5.5% | 6.5% |
Adjusted beta | 1.44 | 2.87 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.50% | 23.30% |
Tax rate | 9.90% | 15.60% |
Debt/Equity ratio | 15.66 | 15.66 |
Cost of debt | 4.00% | 9.60% |
After-tax WACC | 4.1% | 9.0% |
Selected WACC | 6.6% | |