The WACC of Donegal Group Inc (DGICA) is 6.5%.
Range | Selected | |
Cost of equity | 5.60% - 7.80% | 6.70% |
Tax rate | 16.70% - 17.00% | 16.85% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.5% - 7.5% | 6.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.36 | 0.52 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.60% | 7.80% |
Tax rate | 16.70% | 17.00% |
Debt/Equity ratio | 0.08 | 0.08 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.5% | 7.5% |
Selected WACC | 6.5% | |