NIF.UN.TO
Noranda Income Fund
Price:  
1.97 
CAD
Volume:  
48,300.00
Canada | Metals & Mining
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NIF.UN.TO WACC - Weighted Average Cost of Capital

The WACC of Noranda Income Fund (NIF.UN.TO) is 7.4%.

The Cost of Equity of Noranda Income Fund (NIF.UN.TO) is 8.80%.
The Cost of Debt of Noranda Income Fund (NIF.UN.TO) is 9.10%.

Range Selected
Cost of equity 6.90% - 10.70% 8.80%
Tax rate 23.60% - 24.20% 23.90%
Cost of debt 5.20% - 13.00% 9.10%
WACC 4.8% - 10.1% 7.4%
WACC

NIF.UN.TO WACC calculation

Category Low High
Long-term bond rate 3.6% 4.1%
Equity market risk premium 5.5% 6.5%
Adjusted beta 0.6 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 10.70%
Tax rate 23.60% 24.20%
Debt/Equity ratio 2.58 2.58
Cost of debt 5.20% 13.00%
After-tax WACC 4.8% 10.1%
Selected WACC 7.4%