Question 1

What is First Horizon Corporation's WACC?

Accepted Answer

First Horizon Corporation (FHN) has a Weighted Average Cost of Capital (WACC) of 16.87%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 54.15%, with an equity weight of 75.66% in the capital structure.

Question 2

Is First Horizon Corporation's WACC high or low?

Accepted Answer

First Horizon Corporation's WACC of 16.87% 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 First Horizon Corporation's WACC calculated?

Accepted Answer

First Horizon Corporation's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 54.15%. The capital structure is 75.66% equity and 24.34% debt.

First Horizon Corporation (FHN) — WACC 分析

WACC 构成

解读

First Horizon Corporation（FHN）WACC：16.87%

WACC计算器

First Horizon Corporation（FHN） WACC 解读

FHN 公司分析

FHN DCF 估值

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