The WACC of U.S. Bancorp (USB) is 6.7%.
Range | Selected | |
Cost of equity | 7.90% - 10.60% | 9.25% |
Tax rate | 19.70% - 20.20% | 19.95% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 6.0% - 7.4% | 6.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.87 | 1.02 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.90% | 10.60% |
Tax rate | 19.70% | 20.20% |
Debt/Equity ratio | 0.94 | 0.94 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 6.0% | 7.4% |
Selected WACC | 6.7% | |