VZ
Verizon Communications Inc
Price:  
43.86 
USD
Volume:  
18,395,340.00
United States | Diversified Telecommunication Services
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Verizon WACC - Weighted Average Cost of Capital

The WACC of Verizon Communications Inc (VZ) is 5.2%.

The Cost of Equity of Verizon Communications Inc (VZ) is 6.75%.
The Cost of Debt of Verizon Communications Inc (VZ) is 4.45%.

Range Selected
Cost of equity 5.60% - 7.90% 6.75%
Tax rate 23.10% - 23.30% 23.20%
Cost of debt 4.00% - 4.90% 4.45%
WACC 4.4% - 6.0% 5.2%
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 0.37 0.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 7.90%
Tax rate 23.10% 23.30%
Debt/Equity ratio 0.87 0.87
Cost of debt 4.00% 4.90%
After-tax WACC 4.4% 6.0%
Selected WACC 5.2%