RY.TO
Royal Bank of Canada
Price:  
173.09 
CAD
Volume:  
476,074.00
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RY.TO WACC - Weighted Average Cost of Capital

The WACC of Royal Bank of Canada (RY.TO) is 6.0%.

The Cost of Equity of Royal Bank of Canada (RY.TO) is 8.90%.
The Cost of Debt of Royal Bank of Canada (RY.TO) is 5.00%.

Range Selected
Cost of equity 7.40% - 10.40% 8.90%
Tax rate 20.10% - 20.90% 20.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.4% - 6.6% 6.0%
WACC

RY.TO WACC calculation

Category Low High
Long-term bond rate 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.84 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 10.40%
Tax rate 20.10% 20.90%
Debt/Equity ratio 1.43 1.43
Cost of debt 5.00% 5.00%
After-tax WACC 5.4% 6.6%
Selected WACC 6.0%