ALE
ALLETE Inc
Price:  
56.59 
USD
Volume:  
220,613.00
United States | Electric Utilities
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Allete WACC - Weighted Average Cost of Capital

The WACC of ALLETE Inc (ALE) is 5.9%.

The Cost of Equity of ALLETE Inc (ALE) is 7.35%.
The Cost of Debt of ALLETE Inc (ALE) is 4.30%.

Range Selected
Cost of equity 6.10% - 8.60% 7.35%
Tax rate 20.00% - 27.00% 23.50%
Cost of debt 4.00% - 4.60% 4.30%
WACC 5.0% - 6.7% 5.9%
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 0.48 0.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 8.60%
Tax rate 20.00% 27.00%
Debt/Equity ratio 0.59 0.59
Cost of debt 4.00% 4.60%
After-tax WACC 5.0% 6.7%
Selected WACC 5.9%