The WACC of Royal Caribbean Cruises Ltd (RCL) is 7.1%.
Range | Selected | |
Cost of equity | 6.60% - 9.70% | 8.15% |
Tax rate | 26.20% - 27.00% | 26.60% |
Cost of debt | 5.20% - 5.60% | 5.40% |
WACC | 5.9% - 8.2% | 7.1% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.6 | 0.86 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.60% | 9.70% |
Tax rate | 26.20% | 27.00% |
Debt/Equity ratio | 0.35 | 0.35 |
Cost of debt | 5.20% | 5.60% |
After-tax WACC | 5.9% | 8.2% |
Selected WACC | 7.1% | |