The WACC of United Parcel Service Inc (UPS) is 7.9%.
Range | Selected | |
Cost of equity | 7.60% - 10.10% | 8.85% |
Tax rate | 22.00% - 22.20% | 22.10% |
Cost of debt | 4.00% - 4.60% | 4.30% |
WACC | 6.8% - 9.0% | 7.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.8 | 0.93 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.60% | 10.10% |
Tax rate | 22.00% | 22.20% |
Debt/Equity ratio | 0.21 | 0.21 |
Cost of debt | 4.00% | 4.60% |
After-tax WACC | 6.8% | 9.0% |
Selected WACC | 7.9% | |