MRK
Merck & Co Inc
Price:  
125.26 
USD
Volume:  
6,465,308.00
United States | Pharmaceuticals
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Merck WACC - Weighted Average Cost of Capital

The WACC of Merck & Co Inc (MRK) is 6.4%.

The Cost of Equity of Merck & Co Inc (MRK) is 6.70%.
The Cost of Debt of Merck & Co Inc (MRK) is 4.60%.

Range Selected
Cost of equity 5.90% - 7.50% 6.70%
Tax rate 17.80% - 22.20% 20.00%
Cost of debt 4.00% - 5.20% 4.60%
WACC 5.7% - 7.2% 6.4%
WACC

Merck WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.45 0.47
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 7.50%
Tax rate 17.80% 22.20%
Debt/Equity ratio 0.11 0.11
Cost of debt 4.00% 5.20%
After-tax WACC 5.7% 7.2%
Selected WACC 6.4%