The WACC of Canadian Utilities & Telecom Income Fund (UTE.UN.TO) is 6.3%.
Range | Selected | |
Cost of equity | 7.40% - 10.50% | 8.95% |
Tax rate | 26.50% - 26.50% | 26.50% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.5% - 7.1% | 6.3% |
Category | Low | High |
Long-term bond rate | 3.4% | 3.9% |
Equity market risk premium | 4.7% | 5.7% |
Adjusted beta | 0.86 | 1.06 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.40% | 10.50% |
Tax rate | 26.50% | 26.50% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.5% | 7.1% |
Selected WACC | 6.3% | |