The WACC of Lithia Motors Inc (LAD) is 6.7%.
Range | Selected | |
Cost of equity | 8.30% - 11.40% | 9.85% |
Tax rate | 27.30% - 27.50% | 27.40% |
Cost of debt | 4.40% - 7.50% | 5.95% |
WACC | 5.4% - 8.0% | 6.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.96 | 1.17 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.30% | 11.40% |
Tax rate | 27.30% | 27.50% |
Debt/Equity ratio | 1.32 | 1.32 |
Cost of debt | 4.40% | 7.50% |
After-tax WACC | 5.4% | 8.0% |
Selected WACC | 6.7% | |