POW.TO
Power Corporation of Canada
Price:  
38.17 
CAD
Volume:  
4,683,431.00
Canada | Insurance
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POW.TO WACC - Weighted Average Cost of Capital

The WACC of Power Corporation of Canada (POW.TO) is 8.1%.

The Cost of Equity of Power Corporation of Canada (POW.TO) is 11.45%.
The Cost of Debt of Power Corporation of Canada (POW.TO) is 5.00%.

Range Selected
Cost of equity 9.90% - 13.00% 11.45%
Tax rate 12.00% - 13.00% 12.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.3% - 8.9% 8.1%
WACC

POW.TO WACC calculation

Category Low High
Long-term bond rate 3.6% 4.1%
Equity market risk premium 5.5% 6.5%
Adjusted beta 1.15 1.3
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.90% 13.00%
Tax rate 12.00% 13.00%
Debt/Equity ratio 0.92 0.92
Cost of debt 5.00% 5.00%
After-tax WACC 7.3% 8.9%
Selected WACC 8.1%