The WACC of ALLETE Inc (ALE) is 5.0%.
Range | Selected | |
Cost of equity | 5.10% - 6.60% | 5.85% |
Tax rate | 20.00% - 27.00% | 23.50% |
Cost of debt | 4.00% - 4.50% | 4.25% |
WACC | 4.5% - 5.5% | 5.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.26 | 0.31 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.10% | 6.60% |
Tax rate | 20.00% | 27.00% |
Debt/Equity ratio | 0.48 | 0.48 |
Cost of debt | 4.00% | 4.50% |
After-tax WACC | 4.5% | 5.5% |
Selected WACC | 5.0% | |