The WACC of Prudential Financial Inc (PRU) is 7.5%.
Range | Selected | |
Cost of equity | 7.90% - 10.70% | 9.30% |
Tax rate | 18.50% - 19.20% | 18.85% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.6% - 8.5% | 7.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.88 | 1.05 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.90% | 10.70% |
Tax rate | 18.50% | 19.20% |
Debt/Equity ratio | 0.52 | 0.52 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.6% | 8.5% |
Selected WACC | 7.5% | |