The WACC of American Water Works Company Inc (AWK) is 6.3%.
Range | Selected | |
Cost of equity | 6.70% - 8.70% | 7.70% |
Tax rate | 22.20% - 23.10% | 22.65% |
Cost of debt | 4.00% - 4.80% | 4.40% |
WACC | 5.5% - 7.1% | 6.3% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.61 | 0.69 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.70% | 8.70% |
Tax rate | 22.20% | 23.10% |
Debt/Equity ratio | 0.48 | 0.48 |
Cost of debt | 4.00% | 4.80% |
After-tax WACC | 5.5% | 7.1% |
Selected WACC | 6.3% | |