The WACC of Charles Schwab Corp (SCHW) is 7.8%.
Range | Selected | |
Cost of equity | 6.30% - 10.50% | 8.40% |
Tax rate | 23.10% - 23.40% | 23.25% |
Cost of debt | 4.00% - 15.60% | 9.80% |
WACC | 4.0% - 11.5% | 7.8% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.53 | 1 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.30% | 10.50% |
Tax rate | 23.10% | 23.40% |
Debt/Equity ratio | 2.31 | 2.31 |
Cost of debt | 4.00% | 15.60% |
After-tax WACC | 4.0% | 11.5% |
Selected WACC | 7.8% | |