FOR
Forestar Group Inc
Price:  
30.12 
USD
Volume:  
125,257.00
United States | Real Estate Management & Development
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FOR WACC - Weighted Average Cost of Capital

The WACC of Forestar Group Inc (FOR) is 7.0%.

The Cost of Equity of Forestar Group Inc (FOR) is 8.40%.
The Cost of Debt of Forestar Group Inc (FOR) is 5.00%.

Range Selected
Cost of equity 6.70% - 10.10% 8.40%
Tax rate 22.90% - 24.40% 23.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.8% - 8.1% 7.0%
WACC

FOR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.61 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 10.10%
Tax rate 22.90% 24.40%
Debt/Equity ratio 0.44 0.44
Cost of debt 5.00% 5.00%
After-tax WACC 5.8% 8.1%
Selected WACC 7.0%