Scotiabank
Debt Rating
Yield Spread (Ys)
10-year Gov't Bond (Re)
Return on Debt (Rd)
Value
AA6.38
4.67
11.05
Value
Book Value of Long-Term Debt (D)
$1,015,000,000
Shares Outstanding (SO)
$1,220,000,000
Share Price (P)
$55.23
Market Value of Equity (e)
$67,380,600,000
Company Value (V)
$68,395,600,000
Proportion of Debt
1.48%
Proportion of Equity
98.52%
WACC
DDM - Historical Growth
(r(equity) = 11.61%
DDM - Sustainable Growth
(r(equity) = 20.94%
CAPM
(r(equity) = 10.98%
Value
Documentation
fitchratings.com
29-12-2023
yield spread + 10yr bond
31-10-2023
31-10-2023
31-10-2023
P x SO
E+D
D/V
E/V
bankofcanada.ca
6.38 + 4.67
Documentation
Macrotrends.net
Yahoo Finance
Yahoo Finance
$1.22 billion x $55.23
67,380,600,000 + 1,015,000,000
1,015,000,000/68,395,600,000
67,380,600,000/68,395,600,000
Documentation
Formula:
11.45%
WACC= [D/V * (1-Tc) * r(debt)] + [E/V * r(equity)
Sample Calculation:
20.65%
[.0148*(1-.26) * .0148] + [.9852*.1161] = 11.45%
10.83%