The WACC of Advance Auto Parts Inc (AAP) is 7.9%.
Range | Selected | |
Cost of equity | 6.50% - 9.60% | 8.05% |
Tax rate | 23.20% - 23.60% | 23.40% |
Cost of debt | 4.50% - 15.60% | 10.05% |
WACC | 5.2% - 10.6% | 7.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.56 | 0.85 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.50% | 9.60% |
Tax rate | 23.20% | 23.60% |
Debt/Equity ratio | 0.72 | 0.72 |
Cost of debt | 4.50% | 15.60% |
After-tax WACC | 5.2% | 10.6% |
Selected WACC | 7.9% | |