The WACC of Standard Motor Products Inc (SMP) is 7.4%.
Range | Selected | |
Cost of equity | 6.40% - 9.60% | 8.00% |
Tax rate | 24.40% - 24.90% | 24.65% |
Cost of debt | 4.90% - 8.60% | 6.75% |
WACC | 5.9% - 9.0% | 7.4% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.55 | 0.85 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.40% | 9.60% |
Tax rate | 24.40% | 24.90% |
Debt/Equity ratio | 0.23 | 0.23 |
Cost of debt | 4.90% | 8.60% |
After-tax WACC | 5.9% | 9.0% |
Selected WACC | 7.4% | |