SO
Southern Co
Price:  
79.54 
USD
Volume:  
4,833,698.00
United States | Electric Utilities
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SO WACC - Weighted Average Cost of Capital

The WACC of Southern Co (SO) is 6.0%.

The Cost of Equity of Southern Co (SO) is 7.35%.
The Cost of Debt of Southern Co (SO) is 4.60%.

Range Selected
Cost of equity 6.50% - 8.20% 7.35%
Tax rate 11.30% - 14.40% 12.85%
Cost of debt 4.00% - 5.20% 4.60%
WACC 5.3% - 6.6% 6.0%
WACC

SO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.57 0.59
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 8.20%
Tax rate 11.30% 14.40%
Debt/Equity ratio 0.71 0.71
Cost of debt 4.00% 5.20%
After-tax WACC 5.3% 6.6%
Selected WACC 6.0%