POW.TO
Power Corporation of Canada
Price:  
43.10 
CAD
Volume:  
2,393,490.00
Canada | Insurance
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POW.TO WACC - Weighted Average Cost of Capital

The WACC of Power Corporation of Canada (POW.TO) is 7.2%.

The Cost of Equity of Power Corporation of Canada (POW.TO) is 9.35%.
The Cost of Debt of Power Corporation of Canada (POW.TO) is 5.00%.

Range Selected
Cost of equity 8.20% - 10.50% 9.35%
Tax rate 9.90% - 12.00% 10.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.5% - 7.8% 7.2%
WACC

POW.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 1 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.20% 10.50%
Tax rate 9.90% 12.00%
Debt/Equity ratio 0.83 0.83
Cost of debt 5.00% 5.00%
After-tax WACC 6.5% 7.8%
Selected WACC 7.2%