Question 1

What is Alliant Energy Corporation Common Stock's WACC?

Accepted Answer

Alliant Energy Corporation Common Stock (LNT) has a Weighted Average Cost of Capital (WACC) of 5.49%. This is calculated using a Cost of Equity of 6.83% (via CAPM with a beta of 0.36) and a pre-tax Cost of Debt of 4.26%, with an equity weight of 61.39% in the capital structure.

Question 2

Is Alliant Energy Corporation Common Stock's WACC high or low?

Accepted Answer

Alliant Energy Corporation Common Stock's WACC of 5.49% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Alliant Energy Corporation Common Stock's WACC calculated?

Accepted Answer

Alliant Energy Corporation Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 6.83% is derived from the CAPM model using a beta of 0.36. The pre-tax Cost of Debt (Rd) is 4.26%. The capital structure is 61.39% equity and 38.61% debt.

Alliant Energy Corporation Common Stock (LNT) — WACC 分析

WACC 构成

解读

Alliant Energy Corporation Common Stock（LNT）WACC：5.49%

WACC计算器

Alliant Energy Corporation Common Stock（LNT） WACC 解读

LNT 公司分析

LNT DCF 估值

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