MRK
Merck & Co Inc
Price:  
117.84 
USD
Volume:  
8,492,407.00
United States | Pharmaceuticals
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Merck WACC - Weighted Average Cost of Capital

The WACC of Merck & Co Inc (MRK) is 6.2%.

The Cost of Equity of Merck & Co Inc (MRK) is 6.55%.
The Cost of Debt of Merck & Co Inc (MRK) is 4.25%.

Range Selected
Cost of equity 5.80% - 7.30% 6.55%
Tax rate 17.80% - 22.20% 20.00%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.5% - 6.9% 6.2%
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 0.42 0.44
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.30%
Tax rate 17.80% 22.20%
Debt/Equity ratio 0.12 0.12
Cost of debt 4.00% 4.50%
After-tax WACC 5.5% 6.9%
Selected WACC 6.2%