AIG
American International Group Inc
Price:  
70.84 
USD
Volume:  
4,063,346.00
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 8.50%.
The Cost of Debt of American International Group Inc (AIG) is 5.00%.

Range Selected
Cost of equity 7.40% - 9.60% 8.50%
Tax rate 19.30% - 20.50% 19.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.3% - 7.7% 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 0.77 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.60%
Tax rate 19.30% 20.50%
Debt/Equity ratio 0.51 0.51
Cost of debt 5.00% 5.00%
After-tax WACC 6.3% 7.7%
Selected WACC 7.0%