Agency-approved cost of capital rates for the Volume-Related Composite Price Index

The Agency determines the cost of capital rates to be used for the development of the Volume-Related Composite Price Index, under subsection 151(1) of the Canada Transportation Act.

 

The rates are approved each year in March for the upcoming crop year (August 1 - July 31).

Canadian National Railway Company (CN)
Year Long-Term Debt Rate Deferred Taxes Rate Common Equity Pre-Tax Cost of Capital
Pre-Tax Weighted Rate
2016-2017 4.54% 0.00% 8.97% 5.42%
2015-2016 4.42% 0.00% 9.14% 5.70%
2014-2015 4.72% 0.00% 9.55% 6.34%
2013-2014 4.87% 0.00% 8.58% 6.08%
2012-2013 5.32% 0.00% 8.69% 6.45%
2011-2012 5.37% 0.00% 7.37% 5.58%
2010-2011 5.10% 0.00% 7.70% 5.79%
2009-2010 5.39% 0.00% 9.40% 6.34%
2008-2009 5.62% 0.00% 10.00% 7.46%
2007-2008 5.61% 0.00% 11.41% 8.68%
2006-2007 5.46% 0.00% 10.52% 8.06%
2005-2006 5.95% 0.00% 10.58% 8.11%
2004-2005 5.95% 0.00% 11.19% 8.79%
2003-2004 7.13% 0.00% 12.55% 9.96%
2002-2003 7.68% 0.00% 14.31% 11.37%
2001-2002 7.73% 0.00% 17.36% 11.45%
Canadian Pacific Railway Company (CP)
Year Long-Term Debt Rate Deferred Taxes Rate Common Equity Pre-Tax Cost of Capital
Pre-Tax Weighted Rate
2016-2017 5.33% 0.00% 11.15% 7.46%
2015-2016 5.34% 0.00% 10.98% 7.31%
2014-2015 5.40% 0.00% 11.32% 7.54%
2013-2014 5.88% 0.00% 10.26% 7.36%
2012-2013 5.43% 0.00% 10.31% 7.31%
2011-2012  5.59% 0.00% 8.10% 6.16%
2010-2011 5.98% 0.00% 8.24% 6.47%
2009-2010 5.74% 0.00% 8.43% 6.58%
2008-2009 5.40% 0.00% 10.86% 8.16%
2007-2008 5.50% 0.00% 11.05% 8.12%
2006-2007 5.58% 0.00% 11.07% 8.09%
2005-2006 6.43% 0.00% 11.06% 8.30%
2004-2005 6.78% 0.00% 11.39% 8.50%
2003-2004 8.01% 0.00% 13.44% 10.09%
2002-2003 8.79% 0.00% 14.47% 10.95%
2001-2002 8.42% 0.00% 17.16% 11.37%
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