The WACC of TransAlta Corp (TA.TO) is 6.5%.
Range | Selected | |
Cost of equity | 7.10% - 9.60% | 8.35% |
Tax rate | 10.90% - 13.70% | 12.30% |
Cost of debt | 4.00% - 5.80% | 4.90% |
WACC | 5.5% - 7.5% | 6.5% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.78 | 0.9 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.10% | 9.60% |
Tax rate | 10.90% | 13.70% |
Debt/Equity ratio | 0.84 | 0.84 |
Cost of debt | 4.00% | 5.80% |
After-tax WACC | 5.5% | 7.5% |
Selected WACC | 6.5% | |