The WACC of Darden Restaurants Inc (DRI) is 7.4%.
Range | Selected | |
Cost of equity | 6.50% - 9.00% | 7.75% |
Tax rate | 12.30% - 12.50% | 12.40% |
Cost of debt | 4.80% - 4.80% | 4.80% |
WACC | 6.2% - 8.5% | 7.4% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.57 | 0.75 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.50% | 9.00% |
Tax rate | 12.30% | 12.50% |
Debt/Equity ratio | 0.12 | 0.12 |
Cost of debt | 4.80% | 4.80% |
After-tax WACC | 6.2% | 8.5% |
Selected WACC | 7.4% | |