PFBC
Preferred Bank
Price:  
84.78 
USD
Volume:  
204,864.00
United States | Banks
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PFBC WACC - Weighted Average Cost of Capital

The WACC of Preferred Bank (PFBC) is 8.6%.

The Cost of Equity of Preferred Bank (PFBC) is 9.30%.
The Cost of Debt of Preferred Bank (PFBC) is 5.00%.

Range Selected
Cost of equity 7.80% - 10.80% 9.30%
Tax rate 28.40% - 28.60% 28.50%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.3% - 9.9% 8.6%
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 0.86 1.06
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.80%
Tax rate 28.40% 28.60%
Debt/Equity ratio 0.15 0.15
Cost of debt 5.00% 5.00%
After-tax WACC 7.3% 9.9%
Selected WACC 8.6%