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% | |