The WACC of New Residential Investment Corp (NRZ) is 5.6%.
Range | Selected | |
Cost of equity | 9.90% - 13.40% | 11.65% |
Tax rate | 13.40% - 17.60% | 15.50% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.4% - 5.9% | 5.6% |
Category | Low | High |
Long-term bond rate | 4.2% | 4.7% |
Equity market risk premium | 5.0% | 6.0% |
Adjusted beta | 1.14 | 1.37 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.90% | 13.40% |
Tax rate | 13.40% | 17.60% |
Debt/Equity ratio | 4.31 | 4.31 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.4% | 5.9% |
Selected WACC | 5.6% | |