The WACC of Alliance Data Systems Corp (ADS) is 5.2%.
Range | Selected | |
Cost of equity | 15.00% - 21.40% | 18.20% |
Tax rate | 25.00% - 25.80% | 25.40% |
Cost of debt | 4.00% - 4.50% | 4.25% |
WACC | 4.6% - 5.7% | 5.2% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 4.2% | 5.2% |
Adjusted beta | 2.79 | 3.29 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 15.00% | 21.40% |
Tax rate | 25.00% | 25.80% |
Debt/Equity ratio | 6.51 | 6.51 |
Cost of debt | 4.00% | 4.50% |
After-tax WACC | 4.6% | 5.7% |
Selected WACC | 5.2% | |