The WACC of Regional Management Corp (RM) is 7.2%.
Range | Selected | |
Cost of equity | 13.00% - 21.30% | 17.15% |
Tax rate | 22.60% - 23.60% | 23.10% |
Cost of debt | 4.00% - 9.10% | 6.55% |
WACC | 4.9% - 9.6% | 7.2% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.99 | 2.93 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 13.00% | 21.30% |
Tax rate | 22.60% | 23.60% |
Debt/Equity ratio | 4.48 | 4.48 |
Cost of debt | 4.00% | 9.10% |
After-tax WACC | 4.9% | 9.6% |
Selected WACC | 7.2% | |