The WACC of Life Storage Inc (LSI) is 6.5%.
Range | Selected | |
Cost of equity | 5.90% - 7.90% | 6.90% |
Tax rate | 26.20% - 27.00% | 26.60% |
Cost of debt | 4.00% - 5.30% | 4.65% |
WACC | 5.6% - 7.4% | 6.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.45 | 0.55 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.90% | 7.90% |
Tax rate | 26.20% | 27.00% |
Debt/Equity ratio | 0.15 | 0.15 |
Cost of debt | 4.00% | 5.30% |
After-tax WACC | 5.6% | 7.4% |
Selected WACC | 6.5% | |