The WACC of Hormel Foods Corp (HRL) is 6.0%.
Range | Selected | |
Cost of equity | 5.60% - 7.20% | 6.40% |
Tax rate | 19.20% - 20.30% | 19.75% |
Cost of debt | 4.00% - 4.50% | 4.25% |
WACC | 5.2% - 6.7% | 6.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.38 | 0.43 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.60% | 7.20% |
Tax rate | 19.20% | 20.30% |
Debt/Equity ratio | 0.19 | 0.19 |
Cost of debt | 4.00% | 4.50% |
After-tax WACC | 5.2% | 6.7% |
Selected WACC | 6.0% | |