WORK.UN.TO WACC - Weighted Average Cost of Capital

The WACC of Workplace Technology Dividend Fund (WORK.UN.TO) is 9.0%.

The Cost of Equity of Workplace Technology Dividend Fund (WORK.UN.TO) is 12.90%.

The Cost of Debt of Workplace Technology Dividend Fund (WORK.UN.TO) is 5.00%.

	Range	Selected
Cost of equity	11.60% - 14.20%	12.90%
Tax rate	0.20% - 0.20%	0.20%
Cost of debt	5.00% - 5.00%	5.00%
WACC	8.3% - 9.6%	9.0%

WACC

WORK.UN.TO WACC calculation

Category	Low	High

Long-term bond rate	3.2%	3.7%
Equity market risk premium	5.1%	6.1%
Adjusted beta	1.65	1.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	14.20%

Tax rate	0.20%	0.20%
Debt/Equity ratio	1	1
Cost of debt	5.00%	5.00%

After-tax WACC	8.3%	9.6%


Selected WACC	9.0%

WORK.UN.TO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for WORK.UN.TO:

cost_of_equity (12.90%) = risk_free_rate (3.45%) + equity_risk_premium (5.60%) * adjusted_beta (1.65) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.