The WACC of Hersha Hospitality Trust (HT) is 9.1%.
Range | Selected | |
Cost of equity | 9.70% - 12.30% | 11.00% |
Tax rate | 2.40% - 3.10% | 2.75% |
Cost of debt | 4.00% - 12.40% | 8.20% |
WACC | 6.2% - 12.1% | 9.1% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.26 | 1.33 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.70% | 12.30% |
Tax rate | 2.40% | 3.10% |
Debt/Equity ratio | 1.56 | 1.56 |
Cost of debt | 4.00% | 12.40% |
After-tax WACC | 6.2% | 12.1% |
Selected WACC | 9.1% | |