The WACC of LendingClub Corp (LC) is 13.0%.
Range | Selected | |
Cost of equity | 8.40% - 13.30% | 10.85% |
Tax rate | 0.60% - 11.90% | 6.25% |
Cost of debt | 5.80% - 23.90% | 14.85% |
WACC | 6.1% - 19.9% | 13.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.99 | 1.51 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.40% | 13.30% |
Tax rate | 0.60% | 11.90% |
Debt/Equity ratio | 5.96 | 5.96 |
Cost of debt | 5.80% | 23.90% |
After-tax WACC | 6.1% | 19.9% |
Selected WACC | 13.0% | |