SLM
SLM Corp
Price:  
20.14 
USD
Volume:  
1,309,048.00
United States | Consumer Finance
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SLM WACC - Weighted Average Cost of Capital

The WACC of SLM Corp (SLM) is 6.1%.

The Cost of Equity of SLM Corp (SLM) is 8.55%.
The Cost of Debt of SLM Corp (SLM) is 5.00%.

Range Selected
Cost of equity 6.60% - 10.50% 8.55%
Tax rate 24.30% - 24.90% 24.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.1% - 7.0% 6.1%
WACC

SLM WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.59 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 10.50%
Tax rate 24.30% 24.90%
Debt/Equity ratio 1.08 1.08
Cost of debt 5.00% 5.00%
After-tax WACC 5.1% 7.0%
Selected WACC 6.1%