The WACC of Ares Management Corp (ARES) is 7.3%.
Range | Selected | |
Cost of equity | 6.00% - 8.70% | 7.35% |
Tax rate | 13.50% - 13.90% | 13.70% |
Cost of debt | 4.00% - 12.40% | 8.20% |
WACC | 5.3% - 9.3% | 7.3% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.47 | 0.69 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.00% | 8.70% |
Tax rate | 13.50% | 13.90% |
Debt/Equity ratio | 0.44 | 0.44 |
Cost of debt | 4.00% | 12.40% |
After-tax WACC | 5.3% | 9.3% |
Selected WACC | 7.3% | |