The WACC of Diamondrock Hospitality Co (DRH) is 7.8%.
| Range | Selected | |
| Cost of equity | 8.00% - 10.10% | 9.05% |
| Tax rate | 2.10% - 3.90% | 3.00% |
| Cost of debt | 4.40% - 7.50% | 5.95% |
| WACC | 6.7% - 9.0% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.91 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.00% | 10.10% |
| Tax rate | 2.10% | 3.90% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 4.40% | 7.50% |
| After-tax WACC | 6.7% | 9.0% |
| Selected WACC | 7.8% | |