AIG
American International Group Inc
Price:  
77.23 
USD
Volume:  
4,322,932.00
United States | Insurance
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AIG WACC - Weighted Average Cost of Capital

The WACC of American International Group Inc (AIG) is 7.0%.

The Cost of Equity of American International Group Inc (AIG) is 8.40%.
The Cost of Debt of American International Group Inc (AIG) is 5.00%.

Range Selected
Cost of equity 7.10% - 9.70% 8.40%
Tax rate 19.20% - 20.40% 19.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.1% - 7.9% 7.0%
WACC

AIG WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.7 0.87
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.10% 9.70%
Tax rate 19.20% 20.40%
Debt/Equity ratio 0.45 0.45
Cost of debt 5.00% 5.00%
After-tax WACC 6.1% 7.9%
Selected WACC 7.0%