MTG
MGIC Investment Corp
Price:  
24.75 
USD
Volume:  
1,986,818.00
United States | Thrifts & Mortgage Finance
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MTG WACC - Weighted Average Cost of Capital

The WACC of MGIC Investment Corp (MTG) is 7.8%.

The Cost of Equity of MGIC Investment Corp (MTG) is 8.20%.
The Cost of Debt of MGIC Investment Corp (MTG) is 5.00%.

Range Selected
Cost of equity 6.90% - 9.50% 8.20%
Tax rate 20.70% - 20.90% 20.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.6% - 9.0% 7.8%
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 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.50%
Tax rate 20.70% 20.90%
Debt/Equity ratio 0.11 0.11
Cost of debt 5.00% 5.00%
After-tax WACC 6.6% 9.0%
Selected WACC 7.8%