The WACC of Desktop Metal Inc (DM) is 8.6%.
Range | Selected | |
Cost of equity | 8.40% - 14.00% | 11.20% |
Tax rate | 1.90% - 5.90% | 3.90% |
Cost of debt | 7.00% - 7.00% | 7.00% |
WACC | 7.5% - 9.7% | 8.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.99 | 1.63 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.40% | 14.00% |
Tax rate | 1.90% | 5.90% |
Debt/Equity ratio | 1.37 | 1.37 |
Cost of debt | 7.00% | 7.00% |
After-tax WACC | 7.5% | 9.7% |
Selected WACC | 8.6% | |