PZA.TO
Pizza Pizza Royalty Corp
Price:  
12.50 
CAD
Volume:  
8,898.00
Canada | Hotels, Restaurants & Leisure
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PZA.TO WACC - Weighted Average Cost of Capital

The WACC of Pizza Pizza Royalty Corp (PZA.TO) is 7.4%.

The Cost of Equity of Pizza Pizza Royalty Corp (PZA.TO) is 8.00%.
The Cost of Debt of Pizza Pizza Royalty Corp (PZA.TO) is 4.25%.

Range Selected
Cost of equity 6.70% - 9.30% 8.00%
Tax rate 19.90% - 20.10% 20.00%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.2% - 8.5% 7.4%
WACC

PZA.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.7 0.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 9.30%
Tax rate 19.90% 20.10%
Debt/Equity ratio 0.15 0.15
Cost of debt 4.00% 4.50%
After-tax WACC 6.2% 8.5%
Selected WACC 7.4%