First National Financial Corp (FN.TO) WACC Analysis

As of April 2, 2026, First National Financial Corp (FN.TO) carries a Weighted Average Cost of Capital (WACC) of 10.1%. WACC reflects the blended rate First National Financial Corp must pay to both equity and debt holders.

Within that, the cost of equity is 8.9%, the cost of debt is 4.0%, and the effective tax rate is 26.5%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 1.13 – 2.11
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 17.38

What It Means for Investors

With a selected WACC of 10.1%, First National Financial Corp must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.