Question 1

What is Motorola Solutions, Inc. New's WACC?

Accepted Answer

Motorola Solutions, Inc. New (MSI) has a Weighted Average Cost of Capital (WACC) of 7.93%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 3.93%, with an equity weight of 88.87% in the capital structure.

Question 2

Is Motorola Solutions, Inc. New's WACC high or low?

Accepted Answer

Motorola Solutions, Inc. New's WACC of 7.93% 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 Motorola Solutions, Inc. New's WACC calculated?

Accepted Answer

Motorola Solutions, Inc. New's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 3.93%. The capital structure is 88.87% equity and 11.13% debt.

Motorola Solutions, Inc. New (MSI) — WACC 分析

WACC 构成

解读

Motorola Solutions, Inc. New（MSI）WACC：7.93%

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Motorola Solutions, Inc. New（MSI） WACC 解读

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