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