The WACC of Prosperity Bancshares Inc (PB) is 8.1%.
Range | Selected | |
Cost of equity | 8.80% - 12.20% | 10.50% |
Tax rate | 21.00% - 21.30% | 21.15% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 7.0% - 9.1% | 8.1% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.08 | 1.32 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.80% | 12.20% |
Tax rate | 21.00% | 21.30% |
Debt/Equity ratio | 0.6 | 0.6 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 7.0% | 9.1% |
Selected WACC | 8.1% | |