The WACC of United Parcel Service Inc (UPS) is 7.9%.
Range | Selected | |
Cost of equity | 7.80% - 9.90% | 8.85% |
Tax rate | 22.00% - 22.20% | 22.10% |
Cost of debt | 4.00% - 4.60% | 4.30% |
WACC | 7.0% - 8.8% | 7.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.85 | 0.9 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.80% | 9.90% |
Tax rate | 22.00% | 22.20% |
Debt/Equity ratio | 0.2 | 0.2 |
Cost of debt | 4.00% | 4.60% |
After-tax WACC | 7.0% | 8.8% |
Selected WACC | 7.9% | |