The WACC of KAR Auction Services Inc (KAR) is 7.9%.
Range | Selected | |
Cost of equity | 6.90% - 9.10% | 8.00% |
Tax rate | 26.20% - 27.00% | 26.60% |
Cost of debt | 9.10% - 11.70% | 10.40% |
WACC | 6.9% - 9.0% | 7.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.66 | 0.75 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.90% | 9.10% |
Tax rate | 26.20% | 27.00% |
Debt/Equity ratio | 0.17 | 0.17 |
Cost of debt | 9.10% | 11.70% |
After-tax WACC | 6.9% | 9.0% |
Selected WACC | 7.9% | |