FRME
First Merchants Corp
Price:  
31.56 
USD
Volume:  
592,290.00
United States | Banks
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FRME WACC - Weighted Average Cost of Capital

The WACC of First Merchants Corp (FRME) is 8.7%.

The Cost of Equity of First Merchants Corp (FRME) is 9.50%.
The Cost of Debt of First Merchants Corp (FRME) is 5.00%.

Range Selected
Cost of equity 8.40% - 10.60% 9.50%
Tax rate 13.50% - 14.10% 13.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.8% - 9.7% 8.7%
WACC

FRME WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.99 1.02
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.40% 10.60%
Tax rate 13.50% 14.10%
Debt/Equity ratio 0.17 0.17
Cost of debt 5.00% 5.00%
After-tax WACC 7.8% 9.7%
Selected WACC 8.7%