The WACC of Alexandria Real Estate Equities Inc (ARE) is 6.4%.
Range | Selected | |
Cost of equity | 6.70% - 9.80% | 8.25% |
Tax rate | 26.20% - 27.00% | 26.60% |
Cost of debt | 4.00% - 4.80% | 4.40% |
WACC | 5.3% - 7.5% | 6.4% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.61 | 0.89 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.70% | 9.80% |
Tax rate | 26.20% | 27.00% |
Debt/Equity ratio | 0.6 | 0.6 |
Cost of debt | 4.00% | 4.80% |
After-tax WACC | 5.3% | 7.5% |
Selected WACC | 6.4% | |