The WACC of Royal Bank of Canada (RY.TO) is 6.0%.
Range | Selected | |
Cost of equity | 7.90% - 10.60% | 9.25% |
Tax rate | 20.10% - 20.90% | 20.50% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.5% - 6.5% | 6.0% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.93 | 1.06 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.90% | 10.60% |
Tax rate | 20.10% | 20.90% |
Debt/Equity ratio | 1.64 | 1.64 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.5% | 6.5% |
Selected WACC | 6.0% | |