SHO
Sunstone Hotel Investors Inc
Price:  
12.24 
USD
Volume:  
2,324,628.00
United States | Equity Real Estate Investment Trusts (REITs)
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SHO WACC - Weighted Average Cost of Capital

The WACC of Sunstone Hotel Investors Inc (SHO) is 7.7%.

The Cost of Equity of Sunstone Hotel Investors Inc (SHO) is 8.60%.
The Cost of Debt of Sunstone Hotel Investors Inc (SHO) is 5.00%.

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%
WACC

SHO WACC calculation

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%