The WACC of Sunstone Hotel Investors Inc (SHO) is 7.7%.
| Range | Selected | |
| Cost of equity | 7.60% - 9.60% | 8.60% |
| Tax rate | 0.40% - 0.90% | 0.65% |
| Cost of debt | 4.90% - 5.10% | 5.00% |
| WACC | 6.9% - 8.4% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.82 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.60% | 9.60% |
| Tax rate | 0.40% | 0.90% |
| Debt/Equity ratio | 0.34 | 0.34 |
| Cost of debt | 4.90% | 5.10% |
| After-tax WACC | 6.9% | 8.4% |
| Selected WACC | 7.7% | |