The WACC of American Eagle Outfitters Inc (AEO) is 6.0%.
Range | Selected | |
Cost of equity | 5.70% - 12.00% | 8.85% |
Tax rate | 27.00% - 28.70% | 27.85% |
Cost of debt | 4.50% - 4.50% | 4.50% |
WACC | 4.5% - 7.6% | 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 | 1.27 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.70% | 12.00% |
Tax rate | 27.00% | 28.70% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 4.50% | 4.50% |
After-tax WACC | 4.5% | 7.6% |
Selected WACC | 6.0% | |