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