FRME
First Merchants Corp
Price:  
32.76 
USD
Volume:  
189,120.00
United States | Banks
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FRME WACC - Weighted Average Cost of Capital

The WACC of First Merchants Corp (FRME) is 9.2%.

The Cost of Equity of First Merchants Corp (FRME) is 9.90%.
The Cost of Debt of First Merchants Corp (FRME) is 5.00%.

Range Selected
Cost of equity 8.70% - 11.10% 9.90%
Tax rate 13.50% - 14.10% 13.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.1% - 10.2% 9.2%
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 1.05 1.12
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 11.10%
Tax rate 13.50% 14.10%
Debt/Equity ratio 0.16 0.16
Cost of debt 5.00% 5.00%
After-tax WACC 8.1% 10.2%
Selected WACC 9.2%