The WACC of Desktop Metal Inc (DM) is 8.2%.
Range | Selected | |
Cost of equity | 6.70% - 12.30% | 9.50% |
Tax rate | 1.90% - 5.90% | 3.90% |
Cost of debt | 7.00% - 7.00% | 7.00% |
WACC | 6.8% - 9.7% | 8.2% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.61 | 1.33 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.70% | 12.30% |
Tax rate | 1.90% | 5.90% |
Debt/Equity ratio | 0.86 | 0.86 |
Cost of debt | 7.00% | 7.00% |
After-tax WACC | 6.8% | 9.7% |
Selected WACC | 8.2% | |