The WACC of Credit Acceptance Corp (CACC) is 6.4%.
Range | Selected | |
Cost of equity | 6.50% - 8.90% | 7.70% |
Tax rate | 23.40% - 23.60% | 23.50% |
Cost of debt | 4.00% - 9.10% | 6.55% |
WACC | 4.8% - 7.9% | 6.4% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.58 | 0.72 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.50% | 8.90% |
Tax rate | 23.40% | 23.60% |
Debt/Equity ratio | 0.95 | 0.95 |
Cost of debt | 4.00% | 9.10% |
After-tax WACC | 4.8% | 7.9% |
Selected WACC | 6.4% | |