The WACC of Luther Burbank Corp (LBC) is 7.2%.
Range | Selected | |
Cost of equity | 7.30% - 9.40% | 8.35% |
Tax rate | 29.30% - 29.50% | 29.40% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.4% - 8.0% | 7.2% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.75 | 0.82 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.30% | 9.40% |
Tax rate | 29.30% | 29.50% |
Debt/Equity ratio | 0.34 | 0.34 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.4% | 8.0% |
Selected WACC | 7.2% | |