The WACC of FirstEnergy Corp (FE) is 5.5%.
Range | Selected | |
Cost of equity | 5.60% - 7.20% | 6.40% |
Tax rate | 18.70% - 19.70% | 19.20% |
Cost of debt | 4.50% - 7.00% | 5.75% |
WACC | 4.6% - 6.4% | 5.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.37 | 0.41 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.60% | 7.20% |
Tax rate | 18.70% | 19.70% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 4.50% | 7.00% |
After-tax WACC | 4.6% | 6.4% |
Selected WACC | 5.5% | |