MCY
Mercury General Corp
Price:  
49.97 
USD
Volume:  
233,499.00
United States | Insurance
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MCY WACC - Weighted Average Cost of Capital

The WACC of Mercury General Corp (MCY) is 8.0%.

The Cost of Equity of Mercury General Corp (MCY) is 8.70%.
The Cost of Debt of Mercury General Corp (MCY) is 5.00%.

Range Selected
Cost of equity 7.20% - 10.20% 8.70%
Tax rate 17.80% - 20.40% 19.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.8% - 9.2% 8.0%
WACC

MCY WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.66 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 10.20%
Tax rate 17.80% 20.40%
Debt/Equity ratio 0.18 0.18
Cost of debt 5.00% 5.00%
After-tax WACC 6.8% 9.2%
Selected WACC 8.0%