The WACC of Hovnanian Enterprises Inc (HOV) is 9.7%.
Range | Selected | |
Cost of equity | 12.60% - 16.20% | 14.40% |
Tax rate | 15.00% - 23.50% | 19.25% |
Cost of debt | 4.70% - 7.00% | 5.85% |
WACC | 8.4% - 10.9% | 9.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.9 | 2.02 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 12.60% | 16.20% |
Tax rate | 15.00% | 23.50% |
Debt/Equity ratio | 0.95 | 0.95 |
Cost of debt | 4.70% | 7.00% |
After-tax WACC | 8.4% | 10.9% |
Selected WACC | 9.7% | |