MBWM
Mercantile Bank Corp
Price:  
50.23 
USD
Volume:  
48,254.00
United States | Banks
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MBWM WACC - Weighted Average Cost of Capital

The WACC of Mercantile Bank Corp (MBWM) is 7.3%.

The Cost of Equity of Mercantile Bank Corp (MBWM) is 8.75%.
The Cost of Debt of Mercantile Bank Corp (MBWM) is 5.00%.

Range Selected
Cost of equity 7.50% - 10.00% 8.75%
Tax rate 19.50% - 19.70% 19.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.4% - 8.1% 7.3%
WACC

MBWM WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.8 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.00%
Tax rate 19.50% 19.70%
Debt/Equity ratio 0.45 0.45
Cost of debt 5.00% 5.00%
After-tax WACC 6.4% 8.1%
Selected WACC 7.3%