Arctic Glacier Income Fund (AG.UN.CN) WACC Analysis

As of May 22, 2025, Arctic Glacier Income Fund (AG.UN.CN) carries a Weighted Average Cost of Capital (WACC) of 5.9%. WACC reflects the blended rate Arctic Glacier Income Fund must pay to both equity and debt holders.

Within that, the cost of equity is 130.2%, the cost of debt is 5.0%, and the effective tax rate is 8.3%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 27.63 – 40.4
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 121.42

What It Means for Investors

With a selected WACC of 5.9%, Arctic Glacier Income Fund must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.