The WACC of Kansas City Southern (KSU) is 7.3%.
Range | Selected | |
Cost of equity | 6.70% - 9.30% | 8.00% |
Tax rate | 29.90% - 31.40% | 30.65% |
Cost of debt | 4.10% - 4.50% | 4.30% |
WACC | 6.2% - 8.5% | 7.3% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 4.2% | 5.2% |
Adjusted beta | 0.83 | 0.97 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.70% | 9.30% |
Tax rate | 29.90% | 31.40% |
Debt/Equity ratio | 0.14 | 0.14 |
Cost of debt | 4.10% | 4.50% |
After-tax WACC | 6.2% | 8.5% |
Selected WACC | 7.3% | |