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