OTTR
Otter Tail Corp
Price:  
100.47 
USD
Volume:  
344,723.00
United States | Electric Utilities
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OTTR WACC - Weighted Average Cost of Capital

The WACC of Otter Tail Corp (OTTR) is 7.0%.

The Cost of Equity of Otter Tail Corp (OTTR) is 7.50%.
The Cost of Debt of Otter Tail Corp (OTTR) is 5.70%.

Range Selected
Cost of equity 6.40% - 8.60% 7.50%
Tax rate 17.20% - 18.10% 17.65%
Cost of debt 4.40% - 7.00% 5.70%
WACC 5.9% - 8.1% 7.0%
WACC

OTTR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.55 0.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.40% 8.60%
Tax rate 17.20% 18.10%
Debt/Equity ratio 0.23 0.23
Cost of debt 4.40% 7.00%
After-tax WACC 5.9% 8.1%
Selected WACC 7.0%