The WACC of Financial Institutions Inc (FISI) is 7.5%.
Range | Selected | |
Cost of equity | 7.70% - 9.80% | 8.75% |
Tax rate | 19.20% - 20.10% | 19.65% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.7% - 8.3% | 7.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.84 | 0.89 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.70% | 9.80% |
Tax rate | 19.20% | 20.10% |
Debt/Equity ratio | 0.37 | 0.37 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.7% | 8.3% |
Selected WACC | 7.5% | |