The WACC of Cummins Inc (CMI) is 9.4%.
| Range | Selected | |
| Cost of equity | 9.00% - 11.70% | 10.35% |
| Tax rate | 22.10% - 22.50% | 22.30% |
| Cost of debt | 4.00% - 4.80% | 4.40% |
| WACC | 8.2% - 10.6% | 9.4% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.13 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.00% | 11.70% |
| Tax rate | 22.10% | 22.50% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 4.00% | 4.80% |
| After-tax WACC | 8.2% | 10.6% |
| Selected WACC | 9.4% | |