AIG
American International Group Inc
Price:  
72.87 
USD
Volume:  
3,502,161.00
United States | Insurance
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AIG WACC - Weighted Average Cost of Capital

The WACC of American International Group Inc (AIG) is 6.8%.

The Cost of Equity of American International Group Inc (AIG) is 8.25%.
The Cost of Debt of American International Group Inc (AIG) is 5.00%.

Range Selected
Cost of equity 7.00% - 9.50% 8.25%
Tax rate 19.30% - 20.50% 19.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.0% - 7.6% 6.8%
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 0.68 0.82
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 9.50%
Tax rate 19.30% 20.50%
Debt/Equity ratio 0.49 0.49
Cost of debt 5.00% 5.00%
After-tax WACC 6.0% 7.6%
Selected WACC 6.8%