The WACC of First Bancorp (FBP) is 8.6%.
Range | Selected | |
Cost of equity | 7.80% - 9.80% | 8.80% |
Tax rate | 27.60% - 30.80% | 29.20% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 7.6% - 9.5% | 8.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.86 | 0.88 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.80% | 9.80% |
Tax rate | 27.60% | 30.80% |
Debt/Equity ratio | 0.05 | 0.05 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 7.6% | 9.5% |
Selected WACC | 8.6% | |