RCI.B.TO
Rogers Communications Inc
Price:  
35.02 
CAD
Volume:  
464,260.00
Canada | Wireless Telecommunication Services
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RCI.B.TO WACC - Weighted Average Cost of Capital

The WACC of Rogers Communications Inc (RCI.B.TO) is 5.2%.

The Cost of Equity of Rogers Communications Inc (RCI.B.TO) is 8.10%.
The Cost of Debt of Rogers Communications Inc (RCI.B.TO) is 5.65%.

Range Selected
Cost of equity 6.00% - 10.20% 8.10%
Tax rate 26.70% - 26.70% 26.70%
Cost of debt 4.50% - 6.80% 5.65%
WACC 4.0% - 6.4% 5.2%
WACC

RCI.B.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.55 0.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 10.20%
Tax rate 26.70% 26.70%
Debt/Equity ratio 2.51 2.51
Cost of debt 4.50% 6.80%
After-tax WACC 4.0% 6.4%
Selected WACC 5.2%

RCI.B.TO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for RCI.B.TO:

cost_of_equity (8.10%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (0.55) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.