The WACC of Southwest Airlines Co (LUV) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.60% - 7.70% | 6.65% |
| Tax rate | 26.10% - 26.40% | 26.25% |
| Cost of debt | 4.20% - 7.00% | 5.60% |
| WACC | 4.9% - 6.9% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.39 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.60% | 7.70% |
| Tax rate | 26.10% | 26.40% |
| Debt/Equity ratio | 0.43 | 0.43 |
| Cost of debt | 4.20% | 7.00% |
| After-tax WACC | 4.9% | 6.9% |
| Selected WACC | 5.9% | |