The WACC of American Electric Power Company Inc (AEP) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.60% - 7.30% | 6.45% |
| Tax rate | 2.00% - 3.10% | 2.55% |
| Cost of debt | 4.00% - 5.10% | 4.55% |
| WACC | 4.9% - 6.2% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.38 | 0.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.60% | 7.30% |
| Tax rate | 2.00% | 3.10% |
| Debt/Equity ratio | 0.81 | 0.81 |
| Cost of debt | 4.00% | 5.10% |
| After-tax WACC | 4.9% | 6.2% |
| Selected WACC | 5.5% | |