The WACC of Texas Capital Bancshares Inc (TCBI) is 8.6%.
Range | Selected | |
Cost of equity | 8.50% - 11.50% | 10.00% |
Tax rate | 23.20% - 23.90% | 23.55% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 7.5% - 9.8% | 8.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.01 | 1.18 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.50% | 11.50% |
Tax rate | 23.20% | 23.90% |
Debt/Equity ratio | 0.28 | 0.28 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 7.5% | 9.8% |
Selected WACC | 8.6% | |