The WACC of Signature Bank (SBNY) is 6.9%.
Range | Selected | |
Cost of equity | 22.10% - 31.80% | 26.95% |
Tax rate | 27.20% - 27.80% | 27.50% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.3% - 7.6% | 6.9% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 3.96 | 4.81 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 22.10% | 31.80% |
Tax rate | 27.20% | 27.80% |
Debt/Equity ratio | 6.03 | 6.03 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.3% | 7.6% |
Selected WACC | 6.9% | |