The WACC of Waste Management Inc (WM) is 7.6%.
Range | Selected | |
Cost of equity | 7.30% - 9.50% | 8.40% |
Tax rate | 22.00% - 22.90% | 22.45% |
Cost of debt | 4.00% - 4.80% | 4.40% |
WACC | 6.6% - 8.6% | 7.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.76 | 0.83 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.30% | 9.50% |
Tax rate | 22.00% | 22.90% |
Debt/Equity ratio | 0.2 | 0.2 |
Cost of debt | 4.00% | 4.80% |
After-tax WACC | 6.6% | 8.6% |
Selected WACC | 7.6% | |