The WACC of Principal Financial Group Inc (PFG) is 7.0%.
Range | Selected | |
Cost of equity | 6.40% - 8.70% | 7.55% |
Tax rate | 14.80% - 15.20% | 15.00% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.1% - 7.9% | 7.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.56 | 0.68 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.40% | 8.70% |
Tax rate | 14.80% | 15.20% |
Debt/Equity ratio | 0.21 | 0.21 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.1% | 7.9% |
Selected WACC | 7.0% | |