IPG
Interpublic Group of Companies Inc
Price:  
31.09 
USD
Volume:  
3,114,293.00
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 8.95%.
The Cost of Debt of Interpublic Group of Companies Inc (IPG) is 5.45%.

Range Selected
Cost of equity 7.70% - 10.20% 8.95%
Tax rate 20.70% - 21.70% 21.20%
Cost of debt 4.90% - 6.00% 5.45%
WACC 6.9% - 9.0% 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 0.83 0.95
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.20%
Tax rate 20.70% 21.70%
Debt/Equity ratio 0.26 0.26
Cost of debt 4.90% 6.00%
After-tax WACC 6.9% 9.0%
Selected WACC 8.0%