The WACC of Chatham Lodging Trust (CLDT) is 7.4%.
Range | Selected | |
Cost of equity | 6.10% - 8.70% | 7.40% |
Tax rate | 26.20% - 27.00% | 26.60% |
Cost of debt | 4.80% - 15.60% | 10.20% |
WACC | 4.8% - 10.1% | 7.4% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.49 | 0.68 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.10% | 8.70% |
Tax rate | 26.20% | 27.00% |
Debt/Equity ratio | 1.03 | 1.03 |
Cost of debt | 4.80% | 15.60% |
After-tax WACC | 4.8% | 10.1% |
Selected WACC | 7.4% | |