The WACC of Cummins Inc (CMI) is 9.0%.
| Range | Selected | |
| Cost of equity | 8.40% - 11.10% | 9.75% |
| Tax rate | 22.10% - 22.50% | 22.30% |
| Cost of debt | 4.00% - 4.60% | 4.30% |
| WACC | 7.7% - 10.2% | 9.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.98 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.40% | 11.10% |
| Tax rate | 22.10% | 22.50% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 4.00% | 4.60% |
| After-tax WACC | 7.7% | 10.2% |
| Selected WACC | 9.0% | |