AEL
American Equity Investment Life Holding Co
Price:  
55.38 
USD
Volume:  
303,806.00
United States | Insurance
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AEL WACC - Weighted Average Cost of Capital

The WACC of American Equity Investment Life Holding Co (AEL) is 8.1%.

The Cost of Equity of American Equity Investment Life Holding Co (AEL) is 8.95%.
The Cost of Debt of American Equity Investment Life Holding Co (AEL) is 5.00%.

Range Selected
Cost of equity 7.40% - 10.50% 8.95%
Tax rate 20.20% - 21.20% 20.70%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.8% - 9.4% 8.1%
WACC

AEL WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.0% 6.0%
Adjusted beta 0.64 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 10.50%
Tax rate 20.20% 21.20%
Debt/Equity ratio 0.2 0.2
Cost of debt 5.00% 5.00%
After-tax WACC 6.8% 9.4%
Selected WACC 8.1%