The WACC of Southwest Airlines Co (LUV) is 8.6%.
| Range | Selected | |
| Cost of equity | 7.90% - 10.20% | 9.05% |
| Tax rate | 26.10% - 26.40% | 26.25% |
| Cost of debt | 4.20% - 16.70% | 10.45% |
| WACC | 6.3% - 10.9% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.88 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.90% | 10.20% |
| Tax rate | 26.10% | 26.40% |
| Debt/Equity ratio | 0.49 | 0.49 |
| Cost of debt | 4.20% | 16.70% |
| After-tax WACC | 6.3% | 10.9% |
| Selected WACC | 8.6% | |