The WACC of Hovnanian Enterprises Inc (HOV) is 9.0%.
Range | Selected | |
Cost of equity | 12.70% - 17.10% | 14.90% |
Tax rate | 22.00% - 26.00% | 24.00% |
Cost of debt | 4.50% - 7.00% | 5.75% |
WACC | 7.6% - 10.5% | 9.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.91 | 2.18 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 12.70% | 17.10% |
Tax rate | 22.00% | 26.00% |
Debt/Equity ratio | 1.23 | 1.23 |
Cost of debt | 4.50% | 7.00% |
After-tax WACC | 7.6% | 10.5% |
Selected WACC | 9.0% | |