MTOR
Meritor Inc
Price:  
36.50 
USD
Volume:  
2,560,088.00
United States | Machinery
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Meritor WACC - Weighted Average Cost of Capital

The WACC of Meritor Inc (MTOR) is 7.6%.

The Cost of Equity of Meritor Inc (MTOR) is 9.00%.
The Cost of Debt of Meritor Inc (MTOR) is 5.15%.

Range Selected
Cost of equity 7.70% - 10.30% 9.00%
Tax rate 18.40% - 22.00% 20.20%
Cost of debt 4.90% - 5.40% 5.15%
WACC 6.7% - 8.6% 7.6%
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 0.84 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.30%
Tax rate 18.40% 22.00%
Debt/Equity ratio 0.4 0.4
Cost of debt 4.90% 5.40%
After-tax WACC 6.7% 8.6%
Selected WACC 7.6%