The WACC of Laredo Petroleum Inc (LPI) is 9.7%.
Range | Selected | |
Cost of equity | 11.00% - 16.20% | 13.60% |
Tax rate | 0.80% - 1.20% | 1.00% |
Cost of debt | 5.30% - 8.60% | 6.95% |
WACC | 7.7% - 11.8% | 9.7% |
Category | Low | High |
Long-term bond rate | 4.2% | 4.7% |
Equity market risk premium | 4.2% | 5.2% |
Adjusted beta | 1.59 | 2.1 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.00% | 16.20% |
Tax rate | 0.80% | 1.20% |
Debt/Equity ratio | 1.38 | 1.38 |
Cost of debt | 5.30% | 8.60% |
After-tax WACC | 7.7% | 11.8% |
Selected WACC | 9.7% | |