The WACC of Credit Acceptance Corp (CACC) is 6.4%.
Range | Selected | |
Cost of equity | 6.40% - 9.00% | 7.70% |
Tax rate | 23.40% - 23.60% | 23.50% |
Cost of debt | 4.00% - 8.20% | 6.10% |
WACC | 5.0% - 7.8% | 6.4% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.55 | 0.73 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.40% | 9.00% |
Tax rate | 23.40% | 23.60% |
Debt/Equity ratio | 0.72 | 0.72 |
Cost of debt | 4.00% | 8.20% |
After-tax WACC | 5.0% | 7.8% |
Selected WACC | 6.4% | |