facebookcan you calculate WACC for banks? - Seedly

Anonymous

08 May 2020

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General Investing

can you calculate WACC for banks?

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Yes, you can derive it from their financial report and stock screener.

WACC = wdrd (1-t) + were

wd: total debt/(total debt + market cap)

rd: int expense/income before tax

t: income tax expense/income before tax

we: market cap/(total debt+market cap)

re = Ra = Rf + b(Rm +Rf)

Rf: risk free rate (10Y bond by government)

b: beta of bank

Rm: can use average return from the market index

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