The WACC of Southwest Airlines Co (LUV) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.90% - 8.00% | 6.95% |
| Tax rate | 26.10% - 26.40% | 26.25% |
| Cost of debt | 4.20% - 7.00% | 5.60% |
| WACC | 5.1% - 7.2% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.45 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.90% | 8.00% |
| Tax rate | 26.10% | 26.40% |
| Debt/Equity ratio | 0.39 | 0.39 |
| Cost of debt | 4.20% | 7.00% |
| After-tax WACC | 5.1% | 7.2% |
| Selected WACC | 6.2% | |