MTG
MGIC Investment Corp
Price:  
25.59 
USD
Volume:  
2,927,787.00
United States | Thrifts & Mortgage Finance
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MTG WACC - Weighted Average Cost of Capital

The WACC of MGIC Investment Corp (MTG) is 8.5%.

The Cost of Equity of MGIC Investment Corp (MTG) is 9.00%.
The Cost of Debt of MGIC Investment Corp (MTG) is 5.00%.

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%
WACC

MTG WACC calculation

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%