The WACC of Farmland Partners Inc (FPI) is 7.3%.
Range | Selected | |
Cost of equity | 6.40% - 10.40% | 8.40% |
Tax rate | -% - 0.20% | 0.10% |
Cost of debt | 4.00% - 5.60% | 4.80% |
WACC | 5.7% - 8.9% | 7.3% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.55 | 0.99 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.40% | 10.40% |
Tax rate | -% | 0.20% |
Debt/Equity ratio | 0.44 | 0.44 |
Cost of debt | 4.00% | 5.60% |
After-tax WACC | 5.7% | 8.9% |
Selected WACC | 7.3% | |