The WACC of General Motors Co (GM) is 6.5%.
Range | Selected | |
Cost of equity | 8.00% - 12.40% | 10.20% |
Tax rate | 13.90% - 18.50% | 16.20% |
Cost of debt | 4.00% - 7.50% | 5.75% |
WACC | 4.9% - 8.2% | 6.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.91 | 1.35 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.00% | 12.40% |
Tax rate | 13.90% | 18.50% |
Debt/Equity ratio | 2.07 | 2.07 |
Cost of debt | 4.00% | 7.50% |
After-tax WACC | 4.9% | 8.2% |
Selected WACC | 6.5% | |