The WACC of Domtar Corp (UFS) is 8.3%.
Range | Selected | |
Cost of equity | 7.70% - 11.50% | 9.60% |
Tax rate | 12.60% - 18.40% | 15.50% |
Cost of debt | 5.10% - 5.90% | 5.50% |
WACC | 6.8% - 9.7% | 8.3% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 4.2% | 5.2% |
Adjusted beta | 1.07 | 1.4 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.70% | 11.50% |
Tax rate | 12.60% | 18.40% |
Debt/Equity ratio | 0.36 | 0.36 |
Cost of debt | 5.10% | 5.90% |
After-tax WACC | 6.8% | 9.7% |
Selected WACC | 8.3% | |