CATO
Cato Corp
Price:  
6.61 
USD
Volume:  
55,498.00
United States | Specialty Retail
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CATO WACC - Weighted Average Cost of Capital

The WACC of Cato Corp (CATO) is 5.6%.

The Cost of Equity of Cato Corp (CATO) is 6.65%.
The Cost of Debt of Cato Corp (CATO) is 5.00%.

Range Selected
Cost of equity 5.70% - 7.60% 6.65%
Tax rate 7.80% - 12.40% 10.10%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.1% - 6.0% 5.6%
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 0.39 0.48
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.70% 7.60%
Tax rate 7.80% 12.40%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.1% 6.0%
Selected WACC 5.6%