SLM
SLM Corp
Price:  
20.51 
USD
Volume:  
952,887.00
United States | Consumer Finance
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SLM WACC - Weighted Average Cost of Capital

The WACC of SLM Corp (SLM) is 6.0%.

The Cost of Equity of SLM Corp (SLM) is 8.65%.
The Cost of Debt of SLM Corp (SLM) is 5.00%.

Range Selected
Cost of equity 6.70% - 10.60% 8.65%
Tax rate 24.30% - 24.90% 24.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.1% - 6.9% 6.0%
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 0.61 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 10.60%
Tax rate 24.30% 24.90%
Debt/Equity ratio 1.19 1.19
Cost of debt 5.00% 5.00%
After-tax WACC 5.1% 6.9%
Selected WACC 6.0%