MTOR
Meritor Inc
Price:  
36.50 
USD
Volume:  
2,560,090.00
United States | Machinery
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Meritor WACC - Weighted Average Cost of Capital

The WACC of Meritor Inc (MTOR) is 8.1%.

The Cost of Equity of Meritor Inc (MTOR) is 9.80%.
The Cost of Debt of Meritor Inc (MTOR) is 5.00%.

Range Selected
Cost of equity 8.30% - 11.30% 9.80%
Tax rate 18.40% - 22.00% 20.20%
Cost of debt 4.90% - 5.10% 5.00%
WACC 7.1% - 9.2% 8.1%
WACC

Meritor WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.96 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 11.30%
Tax rate 18.40% 22.00%
Debt/Equity ratio 0.4 0.4
Cost of debt 4.90% 5.10%
After-tax WACC 7.1% 9.2%
Selected WACC 8.1%