The WACC of Southwest Airlines Co (LUV) is 5.8%.
Range | Selected | |
Cost of equity | 5.80% - 7.70% | 6.75% |
Tax rate | 26.10% - 26.40% | 26.25% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.1% - 6.5% | 5.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.41 | 0.51 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.80% | 7.70% |
Tax rate | 26.10% | 26.40% |
Debt/Equity ratio | 0.43 | 0.43 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.1% | 6.5% |
Selected WACC | 5.8% | |