VZ
Verizon Communications Inc
Price:  
38.78 
USD
Volume:  
23,881,638.00
United States | Diversified Telecommunication Services
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Verizon WACC - Weighted Average Cost of Capital

The WACC of Verizon Communications Inc (VZ) is 5.0%.

The Cost of Equity of Verizon Communications Inc (VZ) is 6.40%.
The Cost of Debt of Verizon Communications Inc (VZ) is 4.45%.

Range Selected
Cost of equity 5.50% - 7.30% 6.40%
Tax rate 23.10% - 23.30% 23.20%
Cost of debt 4.00% - 4.90% 4.45%
WACC 4.3% - 5.6% 5.0%
WACC

Verizon WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.35 0.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 7.30%
Tax rate 23.10% 23.30%
Debt/Equity ratio 0.92 0.92
Cost of debt 4.00% 4.90%
After-tax WACC 4.3% 5.6%
Selected WACC 5.0%