IPG
Interpublic Group of Companies Inc
Price:  
30.98 
USD
Volume:  
5,374,974.00
United States | Media
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IPG WACC - Weighted Average Cost of Capital

The WACC of Interpublic Group of Companies Inc (IPG) is 8.0%.

The Cost of Equity of Interpublic Group of Companies Inc (IPG) is 9.00%.
The Cost of Debt of Interpublic Group of Companies Inc (IPG) is 5.60%.

Range Selected
Cost of equity 7.70% - 10.30% 9.00%
Tax rate 20.70% - 21.70% 21.20%
Cost of debt 5.20% - 6.00% 5.60%
WACC 6.9% - 9.1% 8.0%
WACC

IPG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.82 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.30%
Tax rate 20.70% 21.70%
Debt/Equity ratio 0.29 0.29
Cost of debt 5.20% 6.00%
After-tax WACC 6.9% 9.1%
Selected WACC 8.0%