MCY
Mercury General Corp
Price:  
50.72 
USD
Volume:  
208,037.00
United States | Insurance
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MCY WACC - Weighted Average Cost of Capital

The WACC of Mercury General Corp (MCY) is 7.1%.

The Cost of Equity of Mercury General Corp (MCY) is 7.75%.
The Cost of Debt of Mercury General Corp (MCY) is 5.00%.

Range Selected
Cost of equity 6.40% - 9.10% 7.75%
Tax rate 16.40% - 17.60% 17.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.0% - 8.2% 7.1%
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 0.54 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 9.10%
Tax rate 16.40% 17.60%
Debt/Equity ratio 0.21 0.21
Cost of debt 5.00% 5.00%
After-tax WACC 6.0% 8.2%
Selected WACC 7.1%