The WACC of American Equity Investment Life Holding Co (AEL) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.90% - 8.20% | 7.05% |
| Tax rate | 21.20% - 21.60% | 21.40% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 5.6% - 7.5% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.44 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.90% | 8.20% |
| Tax rate | 21.20% | 21.60% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 5.6% | 7.5% |
| Selected WACC | 6.5% | |