The WACC of AAR Corp (AIR) is 7.9%.
Range | Selected | |
Cost of equity | 7.70% - 10.90% | 9.30% |
Tax rate | 23.40% - 25.50% | 24.45% |
Cost of debt | 5.30% - 6.30% | 5.80% |
WACC | 6.6% - 9.1% | 7.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.83 | 1.09 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.70% | 10.90% |
Tax rate | 23.40% | 25.50% |
Debt/Equity ratio | 0.41 | 0.41 |
Cost of debt | 5.30% | 6.30% |
After-tax WACC | 6.6% | 9.1% |
Selected WACC | 7.9% | |