The WACC of LendingClub Corp (LC) is 12.5%.
Range | Selected | |
Cost of equity | 7.30% - 10.90% | 9.10% |
Tax rate | 0.60% - 11.90% | 6.25% |
Cost of debt | 5.80% - 23.90% | 14.85% |
WACC | 6.1% - 19.0% | 12.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.74 | 1.07 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.30% | 10.90% |
Tax rate | 0.60% | 11.90% |
Debt/Equity ratio | 4.06 | 4.06 |
Cost of debt | 5.80% | 23.90% |
After-tax WACC | 6.1% | 19.0% |
Selected WACC | 12.5% | |