The WACC of Fifth Third Bancorp (FITB) is 7.6%.
Range | Selected | |
Cost of equity | 8.00% - 10.90% | 9.45% |
Tax rate | 21.10% - 21.30% | 21.20% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.6% - 8.5% | 7.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.9 | 1.08 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.00% | 10.90% |
Tax rate | 21.10% | 21.30% |
Debt/Equity ratio | 0.53 | 0.53 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.6% | 8.5% |
Selected WACC | 7.6% | |