The WACC of International Paper Co (IP) is 7.7%.
Range | Selected | |
Cost of equity | 6.30% - 8.50% | 7.40% |
Tax rate | 17.50% - 27.10% | 22.30% |
Cost of debt | 7.00% - 15.60% | 11.30% |
WACC | 6.2% - 9.1% | 7.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.53 | 0.64 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.30% | 8.50% |
Tax rate | 17.50% | 27.10% |
Debt/Equity ratio | 0.28 | 0.28 |
Cost of debt | 7.00% | 15.60% |
After-tax WACC | 6.2% | 9.1% |
Selected WACC | 7.7% | |