LXRandCo Inc (LXR.TO) WACC Analysis

As of May 27, 2025, LXRandCo Inc (LXR.TO) carries a Weighted Average Cost of Capital (WACC) of 24.9%. WACC reflects the blended rate LXRandCo Inc must pay to both equity and debt holders.

Within that, the cost of equity is 7.1%, the cost of debt is 7.0%, and the effective tax rate is 0.3%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 5.1% – 6.1%
• Adjusted beta: 0.76 – 1.19
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 11.72

What It Means for Investors

With a selected WACC of 24.9%, LXRandCo Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a relatively high financing requirement.