STRA
Strategic Education Inc
Price:  
82.37 
USD
Volume:  
461,939.00
United States | Diversified Consumer Services
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STRA WACC - Weighted Average Cost of Capital

The WACC of Strategic Education Inc (STRA) is 7.9%.

The Cost of Equity of Strategic Education Inc (STRA) is 12.20%.
The Cost of Debt of Strategic Education Inc (STRA) is 5.00%.

Range Selected
Cost of equity 10.50% - 13.90% 12.20%
Tax rate 29.30% - 30.40% 29.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.0% - 8.7% 7.9%
WACC

STRA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.45 1.62
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.50% 13.90%
Tax rate 29.30% 30.40%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.0% 8.7%
Selected WACC 7.9%