MCY
Mercury General Corp
Price:  
48.06 
USD
Volume:  
248,495.00
United States | Insurance
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MCY WACC - Weighted Average Cost of Capital

The WACC of Mercury General Corp (MCY) is 7.7%.

The Cost of Equity of Mercury General Corp (MCY) is 8.20%.
The Cost of Debt of Mercury General Corp (MCY) is 5.00%.

Range Selected
Cost of equity 6.80% - 9.60% 8.20%
Tax rate 16.40% - 17.60% 17.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.4% - 8.9% 7.7%
WACC

MCY WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.63 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.60%
Tax rate 16.40% 17.60%
Debt/Equity ratio 0.14 0.14
Cost of debt 5.00% 5.00%
After-tax WACC 6.4% 8.9%
Selected WACC 7.7%