BAC
Bank of America Corp
Price:  
41.67 
USD
Volume:  
52,030,110.00
United States | Banks
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

BAC WACC - Weighted Average Cost of Capital

The WACC of Bank of America Corp (BAC) is 6.4%.

The Cost of Equity of Bank of America Corp (BAC) is 9.50%.
The Cost of Debt of Bank of America Corp (BAC) is 5.00%.

Range Selected
Cost of equity 8.10% - 10.90% 9.50%
Tax rate 6.20% - 8.30% 7.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.9% - 6.8% 6.4%
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 0.91 1.08
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 10.90%
Tax rate 6.20% 8.30%
Debt/Equity ratio 1.83 1.83
Cost of debt 5.00% 5.00%
After-tax WACC 5.9% 6.8%
Selected WACC 6.4%