ALK
Alaska Air Group Inc
Price:  
42.35 
USD
Volume:  
1,581,256.00
United States | Airlines
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ALK WACC - Weighted Average Cost of Capital

The WACC of Alaska Air Group Inc (ALK) is 6.0%.

The Cost of Equity of Alaska Air Group Inc (ALK) is 7.25%.
The Cost of Debt of Alaska Air Group Inc (ALK) is 4.60%.

Range Selected
Cost of equity 6.10% - 8.40% 7.25%
Tax rate 26.40% - 26.80% 26.60%
Cost of debt 4.00% - 5.20% 4.60%
WACC 5.1% - 7.0% 6.0%
WACC

ALK WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.47 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 8.40%
Tax rate 26.40% 26.80%
Debt/Equity ratio 0.47 0.47
Cost of debt 4.00% 5.20%
After-tax WACC 5.1% 7.0%
Selected WACC 6.0%