The WACC of Southern Co (SO) is 5.3%.
Range | Selected | |
Cost of equity | 5.50% - 7.10% | 6.30% |
Tax rate | 11.30% - 14.40% | 12.85% |
Cost of debt | 4.00% - 4.90% | 4.45% |
WACC | 4.7% - 6.0% | 5.3% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.35 | 0.39 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.50% | 7.10% |
Tax rate | 11.30% | 14.40% |
Debt/Equity ratio | 0.63 | 0.63 |
Cost of debt | 4.00% | 4.90% |
After-tax WACC | 4.7% | 6.0% |
Selected WACC | 5.3% | |