BAC
Bank of America Corp
Price:  
45.67 
USD
Volume:  
29,033,144.00
United States | Banks
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BAC WACC - Weighted Average Cost of Capital

The WACC of Bank of America Corp (BAC) is 6.1%.

The Cost of Equity of Bank of America Corp (BAC) is 8.50%.
The Cost of Debt of Bank of America Corp (BAC) is 5.00%.

Range Selected
Cost of equity 7.40% - 9.60% 8.50%
Tax rate 6.20% - 8.30% 7.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.7% - 6.4% 6.1%
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 0.77 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.60%
Tax rate 6.20% 8.30%
Debt/Equity ratio 1.75 1.75
Cost of debt 5.00% 5.00%
After-tax WACC 5.7% 6.4%
Selected WACC 6.1%