The WACC of ARMOUR Residential REIT Inc (ARR) is 9.9%.
Range | Selected | |
Cost of equity | 6.40% - 9.10% | 7.75% |
Tax rate | 26.20% - 27.00% | 26.60% |
Cost of debt | 4.00% - 23.90% | 13.95% |
WACC | 3.3% - 16.6% | 9.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.55 | 0.75 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.40% | 9.10% |
Tax rate | 26.20% | 27.00% |
Debt/Equity ratio | 8.93 | 8.93 |
Cost of debt | 4.00% | 23.90% |
After-tax WACC | 3.3% | 16.6% |
Selected WACC | 9.9% | |