The WACC of Automatic Data Processing Inc (ADP) is 8.5%.
| Range | Selected | |
| Cost of equity | 7.70% - 9.60% | 8.65% |
| Tax rate | 22.70% - 22.90% | 22.80% |
| Cost of debt | 4.60% - 4.70% | 4.65% |
| WACC | 7.6% - 9.4% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.82 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.70% | 9.60% |
| Tax rate | 22.70% | 22.90% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.60% | 4.70% |
| After-tax WACC | 7.6% | 9.4% |
| Selected WACC | 8.5% | |