The WACC of Hovnanian Enterprises Inc (HOV) is 9.7%.
Range | Selected | |
Cost of equity | 12.80% - 16.60% | 14.70% |
Tax rate | 15.00% - 23.50% | 19.25% |
Cost of debt | 4.70% - 5.10% | 4.90% |
WACC | 8.7% - 10.7% | 9.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.93 | 2.1 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 12.80% | 16.60% |
Tax rate | 15.00% | 23.50% |
Debt/Equity ratio | 0.88 | 0.88 |
Cost of debt | 4.70% | 5.10% |
After-tax WACC | 8.7% | 10.7% |
Selected WACC | 9.7% | |