The WACC of Automatic Data Processing Inc (ADP) is 7.8%.
Range | Selected | |
Cost of equity | 6.90% - 8.80% | 7.85% |
Tax rate | 22.70% - 22.80% | 22.75% |
Cost of debt | 4.50% - 6.30% | 5.40% |
WACC | 6.8% - 8.7% | 7.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.67 | 0.71 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.90% | 8.80% |
Tax rate | 22.70% | 22.80% |
Debt/Equity ratio | 0.03 | 0.03 |
Cost of debt | 4.50% | 6.30% |
After-tax WACC | 6.8% | 8.7% |
Selected WACC | 7.8% | |