The WACC of American Eagle Outfitters Inc (AEO) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.70% - 11.90% | 8.80% |
| Tax rate | 27.00% - 28.70% | 27.85% |
| Cost of debt | 4.50% - 4.50% | 4.50% |
| WACC | 4.5% - 7.5% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.4 | 1.25 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.70% | 11.90% |
| Tax rate | 27.00% | 28.70% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.50% | 4.50% |
| After-tax WACC | 4.5% | 7.5% |
| Selected WACC | 6.0% | |