CATO
Cato Corp
Price:  
5.18 
USD
Volume:  
48,852.00
United States | Specialty Retail
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CATO WACC - Weighted Average Cost of Capital

The WACC of Cato Corp (CATO) is 5.1%.

The Cost of Equity of Cato Corp (CATO) is 6.50%.
The Cost of Debt of Cato Corp (CATO) is 5.00%.

Range Selected
Cost of equity 5.50% - 7.50% 6.50%
Tax rate 12.30% - 39.50% 25.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 4.9% - 5.3% 5.1%
WACC

CATO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.35 0.47
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 7.50%
Tax rate 12.30% 39.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 4.9% 5.3%
Selected WACC 5.1%