The WACC of Discover Financial Services (DFS) is 6.9%.
Range | Selected | |
Cost of equity | 7.20% - 10.00% | 8.60% |
Tax rate | 22.90% - 23.00% | 22.95% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.0% - 7.9% | 6.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.72 | 0.92 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.20% | 10.00% |
Tax rate | 22.90% | 23.00% |
Debt/Equity ratio | 0.54 | 0.54 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.0% | 7.9% |
Selected WACC | 6.9% | |