The WACC of A. O. Smith Corp (AOS) is 10.0%.
Range | Selected | |
Cost of equity | 8.90% - 11.30% | 10.10% |
Tax rate | 21.90% - 22.20% | 22.05% |
Cost of debt | 4.00% - 4.50% | 4.25% |
WACC | 8.8% - 11.2% | 10.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.1 | 1.15 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.90% | 11.30% |
Tax rate | 21.90% | 22.20% |
Debt/Equity ratio | 0.01 | 0.01 |
Cost of debt | 4.00% | 4.50% |
After-tax WACC | 8.8% | 11.2% |
Selected WACC | 10.0% | |