ALK
Alaska Air Group Inc
Price:  
75.55 
USD
Volume:  
2,558,404.00
United States | Airlines
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ALK WACC - Weighted Average Cost of Capital

The WACC of Alaska Air Group Inc (ALK) is 5.5%.

The Cost of Equity of Alaska Air Group Inc (ALK) is 5.95%.
The Cost of Debt of Alaska Air Group Inc (ALK) is 5.00%.

Range Selected
Cost of equity 5.10% - 6.80% 5.95%
Tax rate 27.00% - 27.40% 27.20%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.8% - 6.1% 5.5%
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 0.28 0.35
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.10% 6.80%
Tax rate 27.00% 27.40%
Debt/Equity ratio 0.27 0.27
Cost of debt 5.00% 5.00%
After-tax WACC 4.8% 6.1%
Selected WACC 5.5%