The WACC of Charles Schwab Corp (SCHW) is 5.9%.
Range | Selected | |
Cost of equity | 10.80% - 15.40% | 13.10% |
Tax rate | 23.40% - 23.50% | 23.45% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.4% - 6.4% | 5.9% |
Category | Low | High |
Long-term bond rate | 4.2% | 4.7% |
Equity market risk premium | 5.0% | 6.0% |
Adjusted beta | 1.33 | 1.7 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.80% | 15.40% |
Tax rate | 23.40% | 23.50% |
Debt/Equity ratio | 3.51 | 3.51 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.4% | 6.4% |
Selected WACC | 5.9% | |