Question 1

What is Simmons First National Corp's WACC?

Accepted Answer

Simmons First National Corp (SFNC) has a Weighted Average Cost of Capital (WACC) of 20.00%. 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 176.79%, with an equity weight of 88.53% in the capital structure.

Question 2

Is Simmons First National Corp's WACC high or low?

Accepted Answer

Simmons First National Corp's WACC of 20.00% 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 Simmons First National Corp's WACC calculated?

Accepted Answer

Simmons First National Corp'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 176.79%. The capital structure is 88.53% equity and 11.47% debt.

Simmons First National Corp (SFNC) — WACC 分析

WACC 构成

解读

Simmons First National Corp（SFNC）WACC：20.00%

WACC计算器

Simmons First National Corp（SFNC） WACC 解读

SFNC 公司分析

SFNC DCF 估值

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