PFBC
Preferred Bank
Price:  
72.25 
USD
Volume:  
82,721.00
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 9.40%.
The Cost of Debt of Preferred Bank (PFBC) is 5.00%.

Range Selected
Cost of equity 8.10% - 10.70% 9.40%
Tax rate 28.20% - 28.50% 28.35%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.5% - 9.7% 8.6%
WACC

PFBC WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.85 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 10.70%
Tax rate 28.20% 28.50%
Debt/Equity ratio 0.15 0.15
Cost of debt 5.00% 5.00%
After-tax WACC 7.5% 9.7%
Selected WACC 8.6%