BAC
Bank of America Corp
Price:  
38.76 
USD
Volume:  
47,165,020.00
United States | Banks
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BAC WACC - Weighted Average Cost of Capital

The WACC of Bank of America Corp (BAC) is 6.5%.

The Cost of Equity of Bank of America Corp (BAC) is 10.10%.
The Cost of Debt of Bank of America Corp (BAC) is 5.00%.

Range Selected
Cost of equity 8.90% - 11.30% 10.10%
Tax rate 6.20% - 8.30% 7.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.1% - 6.9% 6.5%
WACC

BAC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.09 1.15
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.90% 11.30%
Tax rate 6.20% 8.30%
Debt/Equity ratio 1.92 1.92
Cost of debt 5.00% 5.00%
After-tax WACC 6.1% 6.9%
Selected WACC 6.5%