The WACC of Federal Agricultural Mortgage Corp (AGM) is 10.9%.
Range | Selected | |
Cost of equity | 6.00% - 12.70% | 9.35% |
Tax rate | 21.00% - 21.00% | 21.00% |
Cost of debt | 4.00% - 23.90% | 13.95% |
WACC | 3.4% - 18.4% | 10.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.46 | 1.4 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.00% | 12.70% |
Tax rate | 21.00% | 21.00% |
Debt/Equity ratio | 13.85 | 13.85 |
Cost of debt | 4.00% | 23.90% |
After-tax WACC | 3.4% | 18.4% |
Selected WACC | 10.9% | |