The WACC of Microsoft Corp (MSFT) is 9.1%.
Range | Selected | |
Cost of equity | 7.60% - 10.90% | 9.25% |
Tax rate | 15.40% - 17.20% | 16.30% |
Cost of debt | 4.00% - 4.50% | 4.25% |
WACC | 7.5% - 10.7% | 9.1% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.81 | 1.08 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.60% | 10.90% |
Tax rate | 15.40% | 17.20% |
Debt/Equity ratio | 0.03 | 0.03 |
Cost of debt | 4.00% | 4.50% |
After-tax WACC | 7.5% | 10.7% |
Selected WACC | 9.1% | |