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)
YearLong-Term Debt RateDeferred Taxes RateCommon Equity Pre-TaxCost of Capital
Pre-Tax Weighted Rate
2017-20184.19%0.00%9.94%5.29%
2016-20174.54%0.00%8.97%5.42%
2015-20164.42%0.00%9.14%5.70%
2014-20154.72%0.00%9.55%6.34%
2013-20144.87%0.00%8.58%6.08%
2012-20135.32%0.00%8.69%6.45%
2011-20125.37%0.00%7.37%5.58%
2010-20115.10%0.00%7.70%5.79%
2009-20105.39%0.00%9.40%6.34%
2008-20095.62%0.00%10.00%7.46%
2007-20085.61%0.00%11.41%8.68%
2006-20075.46%0.00%10.52%8.06%
2005-20065.95%0.00%10.58%8.11%
2004-20055.95%0.00%11.19%8.79%
2003-20047.13%0.00%12.55%9.96%
2002-20037.68%0.00%14.31%11.37%
2001-20027.73%0.00%17.36%11.45%
Canadian Pacific Railway Company (CP)
YearLong-Term Debt RateDeferred Taxes RateCommon Equity Pre-TaxCost of Capital
Pre-Tax Weighted Rate
2017-20185.36%0.00%12.49%7.71%
2016-20175.33%0.00%11.15%7.46%
2015-20165.34%0.00%10.98%7.31%
2014-20155.40%0.00%11.32%7.54%
2013-20145.88%0.00%10.26%7.36%
2012-20135.43%0.00%10.31%7.31%
2011-2012 5.59%0.00%8.10%6.16%
2010-20115.98%0.00%8.24%6.47%
2009-20105.74%0.00%8.43%6.58%
2008-20095.40%0.00%10.86%8.16%
2007-20085.50%0.00%11.05%8.12%
2006-20075.58%0.00%11.07%8.09%
2005-20066.43%0.00%11.06%8.30%
2004-20056.78%0.00%11.39%8.50%
2003-20048.01%0.00%13.44%10.09%
2002-20038.79%0.00%14.47%10.95%
2001-20028.42%0.00%17.16%11.37%
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