The WACC of Advance Auto Parts Inc (AAP) is 7.8%.
Range | Selected | |
Cost of equity | 6.40% - 9.20% | 7.80% |
Tax rate | 23.20% - 23.60% | 23.40% |
Cost of debt | 4.50% - 15.60% | 10.05% |
WACC | 5.2% - 10.3% | 7.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.55 | 0.78 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.40% | 9.20% |
Tax rate | 23.20% | 23.60% |
Debt/Equity ratio | 0.66 | 0.66 |
Cost of debt | 4.50% | 15.60% |
After-tax WACC | 5.2% | 10.3% |
Selected WACC | 7.8% | |