RLJ
RLJ Lodging Trust
Price:  
6.96 
USD
Volume:  
3,337,455.00
United States | Equity Real Estate Investment Trusts (REITs)
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RLJ WACC - Weighted Average Cost of Capital

The WACC of RLJ Lodging Trust (RLJ) is 8.0%.

The Cost of Equity of RLJ Lodging Trust (RLJ) is 11.30%.
The Cost of Debt of RLJ Lodging Trust (RLJ) is 6.55%.

Range Selected
Cost of equity 9.80% - 12.80% 11.30%
Tax rate 2.00% - 2.70% 2.35%
Cost of debt 4.00% - 9.10% 6.55%
WACC 5.8% - 10.1% 8.0%
WACC

RLJ WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.3 1.41
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 12.80%
Tax rate 2.00% 2.70%
Debt/Equity ratio 2.1 2.1
Cost of debt 4.00% 9.10%
After-tax WACC 5.8% 10.1%
Selected WACC 8.0%