TWO
Two Harbors Investment Corp
Price:  
13.74 
USD
Volume:  
930,733.00
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 10.9%.

The Cost of Equity of Two Harbors Investment Corp (TWO) is 7.20%.
The Cost of Debt of Two Harbors Investment Corp (TWO) is 13.95%.

Range Selected
Cost of equity 6.20% - 8.20% 7.20%
Tax rate 9.00% - 19.10% 14.05%
Cost of debt 4.00% - 23.90% 13.95%
WACC 4.0% - 17.8% 10.9%
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 0.5 0.6
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 8.20%
Tax rate 9.00% 19.10%
Debt/Equity ratio 6.39 6.39
Cost of debt 4.00% 23.90%
After-tax WACC 4.0% 17.8%
Selected WACC 10.9%