FRME
First Merchants Corp
Price:  
43.82 
USD
Volume:  
464,348.00
United States | Banks
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FRME WACC - Weighted Average Cost of Capital

The WACC of First Merchants Corp (FRME) is 7.8%.

The Cost of Equity of First Merchants Corp (FRME) is 8.20%.
The Cost of Debt of First Merchants Corp (FRME) is 5.00%.

Range Selected
Cost of equity 7.10% - 9.30% 8.20%
Tax rate 13.50% - 14.10% 13.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.8% - 8.8% 7.8%
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 0.71 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.30%
Tax rate 13.50% 14.10%
Debt/Equity ratio 0.13 0.13
Cost of debt 5.00% 5.00%
After-tax WACC 6.8% 8.8%
Selected WACC 7.8%