The WACC of Northern Trust Corp (NTRS) is 5.6%.
Range | Selected | |
Cost of equity | 12.50% - 19.00% | 15.75% |
Tax rate | 23.90% - 24.40% | 24.15% |
Cost of debt | 4.00% - 7.00% | 5.50% |
WACC | 4.2% - 7.0% | 5.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.88 | 2.52 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 12.50% | 19.00% |
Tax rate | 23.90% | 24.40% |
Debt/Equity ratio | 7.15 | 7.15 |
Cost of debt | 4.00% | 7.00% |
After-tax WACC | 4.2% | 7.0% |
Selected WACC | 5.6% | |