DGICA
Donegal Group Inc
Price:  
14.88 
USD
Volume:  
67,136.00
United States | Insurance
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DGICA WACC - Weighted Average Cost of Capital

The WACC of Donegal Group Inc (DGICA) is 6.5%.

The Cost of Equity of Donegal Group Inc (DGICA) is 6.70%.
The Cost of Debt of Donegal Group Inc (DGICA) is 5.00%.

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%
WACC

DGICA WACC calculation

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%