The WACC of Credit Acceptance Corp (CACC) is 7.3%.
Range | Selected | |
Cost of equity | 7.50% - 11.00% | 9.25% |
Tax rate | 23.40% - 23.60% | 23.50% |
Cost of debt | 4.00% - 9.10% | 6.55% |
WACC | 5.4% - 9.1% | 7.3% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.78 | 1.1 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.50% | 11.00% |
Tax rate | 23.40% | 23.60% |
Debt/Equity ratio | 0.87 | 0.87 |
Cost of debt | 4.00% | 9.10% |
After-tax WACC | 5.4% | 9.1% |
Selected WACC | 7.3% | |