The WACC of Diamondrock Hospitality Co (DRH) is 7.7%.
| Range | Selected | |
| Cost of equity | 7.90% - 10.20% | 9.05% |
| Tax rate | 2.10% - 2.60% | 2.35% |
| Cost of debt | 4.80% - 7.50% | 6.15% |
| WACC | 6.5% - 8.9% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.88 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.90% | 10.20% |
| Tax rate | 2.10% | 2.60% |
| Debt/Equity ratio | 0.77 | 0.77 |
| Cost of debt | 4.80% | 7.50% |
| After-tax WACC | 6.5% | 8.9% |
| Selected WACC | 7.7% | |