AIG
American International Group Inc
Price:  
72.72 
USD
Volume:  
2,618,887.00
United States | Insurance
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AIG WACC - Weighted Average Cost of Capital

The WACC of American International Group Inc (AIG) is 7.3%.

The Cost of Equity of American International Group Inc (AIG) is 8.90%.
The Cost of Debt of American International Group Inc (AIG) is 5.00%.

Range Selected
Cost of equity 7.80% - 10.00% 8.90%
Tax rate 19.30% - 20.50% 19.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.5% - 8.1% 7.3%
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 0.85 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.80% 10.00%
Tax rate 19.30% 20.50%
Debt/Equity ratio 0.49 0.49
Cost of debt 5.00% 5.00%
After-tax WACC 6.5% 8.1%
Selected WACC 7.3%