TWO
Two Harbors Investment Corp
Price:  
11.93 
USD
Volume:  
997,664.00
United States | Mortgage Real Estate Investment Trusts (REITs)
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TWO WACC - Weighted Average Cost of Capital

The WACC of Two Harbors Investment Corp (TWO) is 5.2%.

The Cost of Equity of Two Harbors Investment Corp (TWO) is 7.40%.
The Cost of Debt of Two Harbors Investment Corp (TWO) is 5.50%.

Range Selected
Cost of equity 6.30% - 8.50% 7.40%
Tax rate 3.50% - 13.70% 8.60%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.1% - 6.3% 5.2%
WACC

TWO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.54 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.50%
Tax rate 3.50% 13.70%
Debt/Equity ratio 8.06 8.06
Cost of debt 4.00% 7.00%
After-tax WACC 4.1% 6.3%
Selected WACC 5.2%