The WACC of PAM Transportation Services Inc (PTSI) is 7.7%.
Range | Selected | |
Cost of equity | 9.00% - 11.60% | 10.30% |
Tax rate | 23.90% - 24.50% | 24.20% |
Cost of debt | 4.00% - 7.00% | 5.50% |
WACC | 6.5% - 9.0% | 7.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.11 | 1.2 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.00% | 11.60% |
Tax rate | 23.90% | 24.50% |
Debt/Equity ratio | 0.72 | 0.72 |
Cost of debt | 4.00% | 7.00% |
After-tax WACC | 6.5% | 9.0% |
Selected WACC | 7.7% | |