Question 1

What is Beacon Financial Corporation's WACC?

Accepted Answer

Beacon Financial Corporation (BBT) has a Weighted Average Cost of Capital (WACC) of 8.75%. This is calculated using a Cost of Equity of 8.85% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 10.79%, with an equity weight of 70.23% in the capital structure.

Question 2

Is Beacon Financial Corporation's WACC high or low?

Accepted Answer

Beacon Financial Corporation's WACC of 8.75% falls within the typical 8-12% range for mid-cap growth companies. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Beacon Financial Corporation's WACC calculated?

Accepted Answer

Beacon Financial Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.85% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 10.79%. The capital structure is 70.23% equity and 29.77% debt.

Beacon Financial Corporation (BBT) — WACC 分析

WACC 构成

解读

Beacon Financial Corporation（BBT）WACC：8.75%

WACC计算器

Beacon Financial Corporation（BBT） WACC 解读

BBT 公司分析

BBT DCF 估值

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