PFBC
Preferred Bank
Price:  
90.52 
USD
Volume:  
60,624.00
United States | Banks
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PFBC WACC - Weighted Average Cost of Capital

The WACC of Preferred Bank (PFBC) is 7.8%.

The Cost of Equity of Preferred Bank (PFBC) is 8.35%.
The Cost of Debt of Preferred Bank (PFBC) is 5.00%.

Range Selected
Cost of equity 7.30% - 9.40% 8.35%
Tax rate 28.40% - 28.60% 28.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.8% - 8.8% 7.8%
WACC

PFBC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.74 0.82
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.40%
Tax rate 28.40% 28.60%
Debt/Equity ratio 0.13 0.13
Cost of debt 5.00% 5.00%
After-tax WACC 6.8% 8.8%
Selected WACC 7.8%