The WACC of Discover Financial Services (DFS) is 7.2%.
Range | Selected | |
Cost of equity | 7.70% - 10.40% | 9.05% |
Tax rate | 22.90% - 23.00% | 22.95% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.3% - 8.0% | 7.2% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.84 | 1 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.70% | 10.40% |
Tax rate | 22.90% | 23.00% |
Debt/Equity ratio | 0.58 | 0.58 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.3% | 8.0% |
Selected WACC | 7.2% | |