The WACC of Starbucks Corp (SBUX) is 7.5%.
Range | Selected | |
Cost of equity | 6.90% - 9.20% | 8.05% |
Tax rate | 22.10% - 22.90% | 22.50% |
Cost of debt | 4.00% - 4.80% | 4.40% |
WACC | 6.5% - 8.5% | 7.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.66 | 0.78 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.90% | 9.20% |
Tax rate | 22.10% | 22.90% |
Debt/Equity ratio | 0.14 | 0.14 |
Cost of debt | 4.00% | 4.80% |
After-tax WACC | 6.5% | 8.5% |
Selected WACC | 7.5% | |