The WACC of Northrop Grumman Corp (NOC) is 7.5%.
Range | Selected | |
Cost of equity | 6.90% - 9.30% | 8.10% |
Tax rate | 13.60% - 15.10% | 14.35% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.5% - 8.6% | 7.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.66 | 0.8 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.90% | 9.30% |
Tax rate | 13.60% | 15.10% |
Debt/Equity ratio | 0.18 | 0.18 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.5% | 8.6% |
Selected WACC | 7.5% | |