The WACC of L Brands Inc (LB) is 7.8%.
Range | Selected | |
Cost of equity | 7.50% - 10.30% | 8.90% |
Tax rate | 29.00% - 31.80% | 30.40% |
Cost of debt | 4.30% - 6.80% | 5.55% |
WACC | 6.5% - 9.1% | 7.8% |
Category | Low | High |
Long-term bond rate | 3.2% | 3.7% |
Equity market risk premium | 4.2% | 5.2% |
Adjusted beta | 1.01 | 1.18 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.50% | 10.30% |
Tax rate | 29.00% | 31.80% |
Debt/Equity ratio | 0.29 | 0.29 |
Cost of debt | 4.30% | 6.80% |
After-tax WACC | 6.5% | 9.1% |
Selected WACC | 7.8% | |