Question 1

What is Central Pacific Financial Corporation's WACC?

Accepted Answer

Central Pacific Financial Corporation (CPF) has a Weighted Average Cost of Capital (WACC) of 13.89%. This is calculated using a Cost of Equity of 8.01% (via CAPM with a beta of 0.83) and a pre-tax Cost of Debt of 60.36%, with an equity weight of 85.17% in the capital structure.

Question 2

Is Central Pacific Financial Corporation's WACC high or low?

Accepted Answer

Central Pacific Financial Corporation's WACC of 13.89% is above the typical range, indicating higher perceived risk and cost of capital. 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 Central Pacific Financial Corporation's WACC calculated?

Accepted Answer

Central Pacific Financial Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.01% is derived from the CAPM model using a beta of 0.83. The pre-tax Cost of Debt (Rd) is 60.36%. The capital structure is 85.17% equity and 14.83% debt.

Central Pacific Financial Corporation (CPF) — WACC 分析

WACC 构成

解读

Central Pacific Financial Corporation（CPF）WACC：13.89%

WACC计算器

Central Pacific Financial Corporation（CPF） WACC 解读

CPF 公司分析

CPF DCF 估值

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