ALE
ALLETE Inc
Price:  
64.01 
USD
Volume:  
177,393.00
United States | Electric Utilities
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Allete WACC - Weighted Average Cost of Capital

The WACC of ALLETE Inc (ALE) is 5.1%.

The Cost of Equity of ALLETE Inc (ALE) is 6.00%.
The Cost of Debt of ALLETE Inc (ALE) is 4.25%.

Range Selected
Cost of equity 5.30% - 6.70% 6.00%
Tax rate 20.00% - 27.00% 23.50%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.6% - 5.6% 5.1%
WACC

Allete WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.32 0.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.30% 6.70%
Tax rate 20.00% 27.00%
Debt/Equity ratio 0.48 0.48
Cost of debt 4.00% 4.50%
After-tax WACC 4.6% 5.6%
Selected WACC 5.1%