AIG
American International Group Inc
Price:  
77.24 
USD
Volume:  
3,681,488.00
United States | Insurance
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AIG WACC - Weighted Average Cost of Capital

The WACC of American International Group Inc (AIG) is 6.9%.

The Cost of Equity of American International Group Inc (AIG) is 8.20%.
The Cost of Debt of American International Group Inc (AIG) is 5.00%.

Range Selected
Cost of equity 6.90% - 9.50% 8.20%
Tax rate 19.20% - 20.40% 19.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.0% - 7.8% 6.9%
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 0.67 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 9.50%
Tax rate 19.20% 20.40%
Debt/Equity ratio 0.45 0.45
Cost of debt 5.00% 5.00%
After-tax WACC 6.0% 7.8%
Selected WACC 6.9%