The WACC of Fifth Third Bancorp (FITB) is 6.8%.
Range | Selected | |
Cost of equity | 7.10% - 9.20% | 8.15% |
Tax rate | 21.10% - 21.30% | 21.20% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.1% - 7.5% | 6.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.71 | 0.78 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.10% | 9.20% |
Tax rate | 21.10% | 21.30% |
Debt/Equity ratio | 0.5 | 0.5 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.1% | 7.5% |
Selected WACC | 6.8% | |