The WACC of Preferred Bank (PFBC) is 8.7%.
| Range | Selected | |
| Cost of equity | 7.90% - 11.00% | 9.45% |
| Tax rate | 28.40% - 28.60% | 28.50% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 7.4% - 10.1% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.86 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.90% | 11.00% |
| Tax rate | 28.40% | 28.60% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 7.4% | 10.1% |
| Selected WACC | 8.7% | |