HPS.A.TO
Hammond Power Solutions Inc
Price:  
138.20 
CAD
Volume:  
23,302.00
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 6.9%.

The Cost of Equity of Hammond Power Solutions Inc (HPS.A.TO) is 7.00%.
The Cost of Debt of Hammond Power Solutions Inc (HPS.A.TO) is 4.25%.

Range Selected
Cost of equity 5.90% - 8.10% 7.00%
Tax rate 27.00% - 29.40% 28.20%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.8% - 8.0% 6.9%
WACC

HPS.A.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.54 0.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 8.10%
Tax rate 27.00% 29.40%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 4.50%
After-tax WACC 5.8% 8.0%
Selected WACC 6.9%