The WACC of Electronic Arts Inc (EA) is 7.6%.
Range | Selected | |
Cost of equity | 6.90% - 8.80% | 7.85% |
Tax rate | 24.20% - 32.00% | 28.10% |
Cost of debt | 4.00% - 4.50% | 4.25% |
WACC | 6.7% - 8.5% | 7.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.65 | 0.7 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.90% | 8.80% |
Tax rate | 24.20% | 32.00% |
Debt/Equity ratio | 0.05 | 0.05 |
Cost of debt | 4.00% | 4.50% |
After-tax WACC | 6.7% | 8.5% |
Selected WACC | 7.6% | |