The WACC of MGIC Investment Corp (MTG) is 8.5%.
Range | Selected | |
Cost of equity | 7.70% - 10.30% | 9.00% |
Tax rate | 20.60% - 20.70% | 20.65% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 7.3% - 9.7% | 8.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.82 | 0.96 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.70% | 10.30% |
Tax rate | 20.60% | 20.70% |
Debt/Equity ratio | 0.1 | 0.1 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 7.3% | 9.7% |
Selected WACC | 8.5% | |