ALE
ALLETE Inc
Price:  
64.55 
USD
Volume:  
270,298.00
United States | Electric Utilities
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Allete WACC - Weighted Average Cost of Capital

The WACC of ALLETE Inc (ALE) is 5.0%.

The Cost of Equity of ALLETE Inc (ALE) is 5.85%.
The Cost of Debt of ALLETE Inc (ALE) is 4.25%.

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%
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 0.26 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%