The WACC of Donegal Group Inc (DGICA) is 7.5%.
Range | Selected | |
Cost of equity | 6.40% - 9.00% | 7.70% |
Tax rate | 16.70% - 17.00% | 16.85% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.3% - 8.7% | 7.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.56 | 0.74 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.40% | 9.00% |
Tax rate | 16.70% | 17.00% |
Debt/Equity ratio | 0.07 | 0.07 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.3% | 8.7% |
Selected WACC | 7.5% | |