HPS.A.TO
Hammond Power Solutions Inc
Price:  
118.95 
CAD
Volume:  
33,429.00
Canada | Electrical Equipment
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HPS.A.TO WACC - Weighted Average Cost of Capital

The WACC of Hammond Power Solutions Inc (HPS.A.TO) is 6.6%.

The Cost of Equity of Hammond Power Solutions Inc (HPS.A.TO) is 6.60%.
The Cost of Debt of Hammond Power Solutions Inc (HPS.A.TO) is 4.25%.

Range Selected
Cost of equity 5.30% - 7.90% 6.60%
Tax rate 29.90% - 31.10% 30.50%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.3% - 7.9% 6.6%
WACC

HPS.A.TO WACC calculation

Category Low High
Long-term bond rate 3.3% 3.8%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.4 0.6
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.30% 7.90%
Tax rate 29.90% 31.10%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.00% 4.50%
After-tax WACC 5.3% 7.9%
Selected WACC 6.6%