BAC
Bank of America Corp
Price:  
39.70 
USD
Volume:  
22,161,160.00
United States | Banks
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BAC WACC - Weighted Average Cost of Capital

The WACC of Bank of America Corp (BAC) is 6.6%.

The Cost of Equity of Bank of America Corp (BAC) is 10.40%.
The Cost of Debt of Bank of America Corp (BAC) is 5.00%.

Range Selected
Cost of equity 9.00% - 11.80% 10.40%
Tax rate 6.20% - 8.30% 7.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.2% - 7.0% 6.6%
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 1.12 1.24
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 11.80%
Tax rate 6.20% 8.30%
Debt/Equity ratio 1.97 1.97
Cost of debt 5.00% 5.00%
After-tax WACC 6.2% 7.0%
Selected WACC 6.6%