The WACC of Independence Holding Co (IHC) is 5.8%.
Range | Selected | |
Cost of equity | 7.30% - 9.70% | 8.50% |
Tax rate | 33.40% - 41.60% | 37.50% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.3% - 6.3% | 5.8% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 4.2% | 5.2% |
Adjusted beta | 0.96 | 1.05 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.30% | 9.70% |
Tax rate | 33.40% | 41.60% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.3% | 6.3% |
Selected WACC | 5.8% | |