AEL
American Equity Investment Life Holding Co
Price:  
56.47 
USD
Volume:  
3,933,218.00
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 7.0%.

The Cost of Equity of American Equity Investment Life Holding Co (AEL) is 7.60%.
The Cost of Debt of American Equity Investment Life Holding Co (AEL) is 5.00%.

Range Selected
Cost of equity 6.30% - 8.90% 7.60%
Tax rate 21.20% - 21.60% 21.40%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.9% - 8.1% 7.0%
WACC

AEL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.53 0.71
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.30% 8.90%
Tax rate 21.20% 21.60%
Debt/Equity ratio 0.19 0.19
Cost of debt 5.00% 5.00%
After-tax WACC 5.9% 8.1%
Selected WACC 7.0%