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 7.2%.

The Cost of Equity of Noranda Income Fund (NIF.UN.TO) is 9.25%.
The Cost of Debt of Noranda Income Fund (NIF.UN.TO) is 8.45%.

Range Selected
Cost of equity 7.50% - 11.00% 9.25%
Tax rate 23.60% - 24.20% 23.90%
Cost of debt 5.20% - 11.70% 8.45%
WACC 5.0% - 9.4% 7.2%
WACC

NIF.UN.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.86 1.12
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 11.00%
Tax rate 23.60% 24.20%
Debt/Equity ratio 2.55 2.55
Cost of debt 5.20% 11.70%
After-tax WACC 5.0% 9.4%
Selected WACC 7.2%