AMBC
Ambac Financial Group Inc
Price:  
7.31 
USD
Volume:  
970,400.00
United States | Insurance
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AMBC WACC - Weighted Average Cost of Capital

The WACC of Ambac Financial Group Inc (AMBC) is 7.7%.

The Cost of Equity of Ambac Financial Group Inc (AMBC) is 9.00%.
The Cost of Debt of Ambac Financial Group Inc (AMBC) is 5.00%.

Range Selected
Cost of equity 7.20% - 10.80% 9.00%
Tax rate 1.20% - 2.60% 1.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.5% - 8.8% 7.7%
WACC

AMBC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.73 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.20% 10.80%
Tax rate 1.20% 2.60%
Debt/Equity ratio 0.5 0.5
Cost of debt 5.00% 5.00%
After-tax WACC 6.5% 8.8%
Selected WACC 7.7%