The WACC of PAM Transportation Services Inc (PTSI) is 9.8%.
Range | Selected | |
Cost of equity | 8.80% - 11.40% | 10.10% |
Tax rate | 23.90% - 24.50% | 24.20% |
Cost of debt | 4.00% - 20.90% | 12.45% |
WACC | 6.6% - 13.0% | 9.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.07 | 1.17 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.80% | 11.40% |
Tax rate | 23.90% | 24.50% |
Debt/Equity ratio | 0.61 | 0.61 |
Cost of debt | 4.00% | 20.90% |
After-tax WACC | 6.6% | 13.0% |
Selected WACC | 9.8% | |