The WACC of Signature Bank (SBNY) is 6.8%.
Range | Selected | |
Cost of equity | 22.30% - 31.20% | 26.75% |
Tax rate | 27.20% - 27.80% | 27.50% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.2% - 7.4% | 6.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 4.01 | 4.7 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 22.30% | 31.20% |
Tax rate | 27.20% | 27.80% |
Debt/Equity ratio | 6.37 | 6.37 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.2% | 7.4% |
Selected WACC | 6.8% | |