The WACC of Red River Bancshares Inc (RRBI) is 6.5%.
Range | Selected | |
Cost of equity | 7.80% - 10.20% | 9.00% |
Tax rate | 18.20% - 18.30% | 18.25% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.9% - 7.2% | 6.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.85 | 0.96 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.80% | 10.20% |
Tax rate | 18.20% | 18.30% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.9% | 7.2% |
Selected WACC | 6.5% | |