The WACC of Sonic Automotive Inc (SAH) is 7.0%.
Range | Selected | |
Cost of equity | 11.00% - 14.20% | 12.60% |
Tax rate | 27.00% - 34.80% | 30.90% |
Cost of debt | 4.00% - 7.70% | 5.85% |
WACC | 5.7% - 8.2% | 7.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.54 | 1.66 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.00% | 14.20% |
Tax rate | 27.00% | 34.80% |
Debt/Equity ratio | 1.87 | 1.87 |
Cost of debt | 4.00% | 7.70% |
After-tax WACC | 5.7% | 8.2% |
Selected WACC | 7.0% | |