The WACC of Regional Management Corp (RM) is 5.9%.
Range | Selected | |
Cost of equity | 13.20% - 23.20% | 18.20% |
Tax rate | 22.50% - 23.60% | 23.05% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.2% - 6.6% | 5.9% |
Category | Low | High |
Long-term bond rate | 4.2% | 4.7% |
Equity market risk premium | 5.0% | 6.0% |
Adjusted beta | 1.81 | 3 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 13.20% | 23.20% |
Tax rate | 22.50% | 23.60% |
Debt/Equity ratio | 5.89 | 5.89 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.2% | 6.6% |
Selected WACC | 5.9% | |