The WACC of American Electric Power Company Inc (AEP) is 5.2%.
| Range | Selected | |
| Cost of equity | 4.80% - 6.50% | 5.65% |
| Tax rate | 1.80% - 3.10% | 2.45% |
| Cost of debt | 4.00% - 5.60% | 4.80% |
| WACC | 4.4% - 6.0% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.21 | 0.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.80% | 6.50% |
| Tax rate | 1.80% | 3.10% |
| Debt/Equity ratio | 0.85 | 0.85 |
| Cost of debt | 4.00% | 5.60% |
| After-tax WACC | 4.4% | 6.0% |
| Selected WACC | 5.2% | |