<span title="DenverInternationalAirport?">DenverInternationalAirpor...</span>

Question

Question : does DenverInternationalAirport pay out dividends? Tried the DIA website could not seem to find any there. Nothing on Hoover's or MorningStar financials as well. If the Airport does not pay out to investors then could you still calculate the WACC analysis. If so what replaces dividend payout in the cost of equity?

Answer 1

DIA is not a company.  It is owned and operated by the City of Denver.  Are you confusing stock with municipal bonds?

Answer 2

The airport is owned by the City and it was financed with debt instruments called municipal bonds. There was no equity instrument because the bonds are tax exempt.

If you have access to Bloomberg, search under City of Denver or Denver County to see if there are any secondary market bonds.

Most US airports are financed with tax exempt bonds, as are the baggage handling equipment and parking facilities. The gates themselves are leased to the airlines, and the payments from the leased help defray the interest cost of the bonds