The WACC of Carmax Inc (KMX) is 7.8%.
Range | Selected | |
Cost of equity | 8.60% - 11.30% | 9.95% |
Tax rate | 23.20% - 23.60% | 23.40% |
Cost of debt | 4.00% - 12.40% | 8.20% |
WACC | 5.4% - 10.2% | 7.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.04 | 1.15 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.60% | 11.30% |
Tax rate | 23.20% | 23.60% |
Debt/Equity ratio | 1.44 | 1.44 |
Cost of debt | 4.00% | 12.40% |
After-tax WACC | 5.4% | 10.2% |
Selected WACC | 7.8% | |