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% | |