MTG
MGIC Investment Corp
Price:  
25.55 
USD
Volume:  
1,157,373.00
United States | Thrifts & Mortgage Finance
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MTG WACC - Weighted Average Cost of Capital

The WACC of MGIC Investment Corp (MTG) is 7.7%.

The Cost of Equity of MGIC Investment Corp (MTG) is 8.10%.
The Cost of Debt of MGIC Investment Corp (MTG) is 5.00%.

Range Selected
Cost of equity 6.80% - 9.40% 8.10%
Tax rate 20.60% - 20.70% 20.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.6% - 8.9% 7.7%
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 0.65 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.80% 9.40%
Tax rate 20.60% 20.70%
Debt/Equity ratio 0.1 0.1
Cost of debt 5.00% 5.00%
After-tax WACC 6.6% 8.9%
Selected WACC 7.7%