Description
workings of the AES used in Strategic Financial Management.
KeyWords: WACC, Cost of Equity, Cost of Debt, Beta
10 year US Treasury Bond US Risk Premium Unlevered Beta Contract Generation Large Utility Growth Distribution Competitive Supply
4.5% 7%
0.25 0.25 0.25 0.5
Business/Project Andres Caracoles Drax Eletropaulo Gener Haripur Kelvin Lal Pir Los Mina OPGC Ottana Red Oak Rivnoblenegro Telasi Uruguaiana
Line of Business Tax Rate D/V E/V Default Spread Sovereign Spread CG 25.00% 35.10% 64.90% 3.57% 8.93% CS 35.00% 40.80% 59.20% 3.57% 16.25% CS 0.00% 29.50% 70.50% 3.57% 0.00% LU 34.00% 30.00% 70.00% 2.89% 8.93% CG 17.00% 35.20% 64.80% 4.34% 1.73% CG 0.00% 33.30% 66.70% 4.34% 5.23% CG 25.00% 32.90% 67.10% 4.34% 3.14% CG 23.00% 35.10% 64.90% 3.57% 9.90% CG 25.00% 28.70% 71.30% 1.85% 8.93% CG 7.90% 30.40% 69.60% 3.57% 3.60% CS 35.00% 42.50% 57.50% 4.34% 0.14% CG 37.50% 39.50% 60.50% 3.57% 0.00% GD 30.00% 36.50% 63.50% 3.57% 9.98% GD 20.00% 26.10% 73.90% 1.85% 9.98% CG 34.00% 32.20% 67.80% 1.85% 8.93%
Adjusted Cost Adjusted Cost of Debt WACC Relevered Beta Cost of Equity Cost of Debt of Equity Risk Scores 0.39 7.20% 8.07% 16.13% 17.00% 14.94% 3.000 0.84 10.41% 8.07% 26.66% 24.32% 22.23% 1.825 0.71 9.46% 8.07% 9.46% 8.07% 9.05% 1.460 0.36 7.00% 7.39% 15.93% 16.32% 14.38% 2.175 0.39 7.20% 8.84% 8.93% 10.57% 8.88% 0.750 0.37 7.12% 8.84% 12.35% 14.07% 12.93% 0.790 0.37 7.11% 8.84% 10.25% 11.98% 9.83% 1.070 0.39 7.20% 8.07% 17.10% 17.97% 15.95% 1.425 0.35 6.95% 6.35% 15.88% 15.28% 14.61% 2.565 0.36 7.01% 8.07% 10.61% 11.67% 10.66% 1.490 0.87 10.59% 8.84% 10.73% 8.98% 8.65% 0.425 0.41 7.39% 8.07% 7.39% 8.07% 6.46% 0.640 0.39 7.26% 8.07% 17.24% 18.05% 15.56% 0.605 0.34 6.87% 6.35% 16.85% 16.33% 15.86% 2.530 0.37 7.08% 6.35% 16.01% 15.28% 14.10% 2.210
Adjust 15.00% 9.13% 7.30% 10.88% 3.75% 3.95% 5.35% 7.13% 12.83% 7.45% 2.13% 3.20% 3.03% 12.65% 11.05%
Adjusted WACC 29.94% 31.36% 16.35% 25.26% 12.63% 16.88% 15.18% 23.08% 27.44% 18.11% 10.77% 9.66% 18.58% 28.51% 25.15%
Business/Project Andres Caracoles Drax Eletropaulo Gener Haripur Kelvin Lal Pir Los Mina OPGC Ottana Red Oak Rivnoblenegro Telasi Uruguaiana
Operation / Construction Technical 3 3 0 0 0 2 1 0 0 0 0 0 0 0 0
3 2 2 1 0 0 0 1 3 1 0 2 0 2 0
Contract Enf / Regulatory Currency Counterparty Legal 3 3 3 3 2 2 0 2 2 0 2 2 3 3 1 3 1 1 1 0 0 0 1 1 1 2 2 1 2 2 1 2 3 3 3 3 3 2 3 2 0 1 3 0 0 0 3 0 1 2 1 0 3 3 3 3 3 3 2 3
Categories of Risk Operational/Technical Counterparty Credit/Performance Regulatory Construction Commodity Currency Contractual Enforcement/Legal
Weight 3.5% 7.0% 10.5% 14.5% 18.0% 21.5% 25.0%
Commodity Risk Score 3 3.000 1 1.825 3 1.460 2 2.175 2 0.750 1 0.790 0 1.070 1 1.425 3 2.565 0 1.490 0 0.425 2 0.640 0 0.605 3 2.530 2 2.210
doc_161406544.xls
workings of the AES used in Strategic Financial Management.
KeyWords: WACC, Cost of Equity, Cost of Debt, Beta
10 year US Treasury Bond US Risk Premium Unlevered Beta Contract Generation Large Utility Growth Distribution Competitive Supply
4.5% 7%
0.25 0.25 0.25 0.5
Business/Project Andres Caracoles Drax Eletropaulo Gener Haripur Kelvin Lal Pir Los Mina OPGC Ottana Red Oak Rivnoblenegro Telasi Uruguaiana
Line of Business Tax Rate D/V E/V Default Spread Sovereign Spread CG 25.00% 35.10% 64.90% 3.57% 8.93% CS 35.00% 40.80% 59.20% 3.57% 16.25% CS 0.00% 29.50% 70.50% 3.57% 0.00% LU 34.00% 30.00% 70.00% 2.89% 8.93% CG 17.00% 35.20% 64.80% 4.34% 1.73% CG 0.00% 33.30% 66.70% 4.34% 5.23% CG 25.00% 32.90% 67.10% 4.34% 3.14% CG 23.00% 35.10% 64.90% 3.57% 9.90% CG 25.00% 28.70% 71.30% 1.85% 8.93% CG 7.90% 30.40% 69.60% 3.57% 3.60% CS 35.00% 42.50% 57.50% 4.34% 0.14% CG 37.50% 39.50% 60.50% 3.57% 0.00% GD 30.00% 36.50% 63.50% 3.57% 9.98% GD 20.00% 26.10% 73.90% 1.85% 9.98% CG 34.00% 32.20% 67.80% 1.85% 8.93%
Adjusted Cost Adjusted Cost of Debt WACC Relevered Beta Cost of Equity Cost of Debt of Equity Risk Scores 0.39 7.20% 8.07% 16.13% 17.00% 14.94% 3.000 0.84 10.41% 8.07% 26.66% 24.32% 22.23% 1.825 0.71 9.46% 8.07% 9.46% 8.07% 9.05% 1.460 0.36 7.00% 7.39% 15.93% 16.32% 14.38% 2.175 0.39 7.20% 8.84% 8.93% 10.57% 8.88% 0.750 0.37 7.12% 8.84% 12.35% 14.07% 12.93% 0.790 0.37 7.11% 8.84% 10.25% 11.98% 9.83% 1.070 0.39 7.20% 8.07% 17.10% 17.97% 15.95% 1.425 0.35 6.95% 6.35% 15.88% 15.28% 14.61% 2.565 0.36 7.01% 8.07% 10.61% 11.67% 10.66% 1.490 0.87 10.59% 8.84% 10.73% 8.98% 8.65% 0.425 0.41 7.39% 8.07% 7.39% 8.07% 6.46% 0.640 0.39 7.26% 8.07% 17.24% 18.05% 15.56% 0.605 0.34 6.87% 6.35% 16.85% 16.33% 15.86% 2.530 0.37 7.08% 6.35% 16.01% 15.28% 14.10% 2.210
Adjust 15.00% 9.13% 7.30% 10.88% 3.75% 3.95% 5.35% 7.13% 12.83% 7.45% 2.13% 3.20% 3.03% 12.65% 11.05%
Adjusted WACC 29.94% 31.36% 16.35% 25.26% 12.63% 16.88% 15.18% 23.08% 27.44% 18.11% 10.77% 9.66% 18.58% 28.51% 25.15%
Business/Project Andres Caracoles Drax Eletropaulo Gener Haripur Kelvin Lal Pir Los Mina OPGC Ottana Red Oak Rivnoblenegro Telasi Uruguaiana
Operation / Construction Technical 3 3 0 0 0 2 1 0 0 0 0 0 0 0 0
3 2 2 1 0 0 0 1 3 1 0 2 0 2 0
Contract Enf / Regulatory Currency Counterparty Legal 3 3 3 3 2 2 0 2 2 0 2 2 3 3 1 3 1 1 1 0 0 0 1 1 1 2 2 1 2 2 1 2 3 3 3 3 3 2 3 2 0 1 3 0 0 0 3 0 1 2 1 0 3 3 3 3 3 3 2 3
Categories of Risk Operational/Technical Counterparty Credit/Performance Regulatory Construction Commodity Currency Contractual Enforcement/Legal
Weight 3.5% 7.0% 10.5% 14.5% 18.0% 21.5% 25.0%
Commodity Risk Score 3 3.000 1 1.825 3 1.460 2 2.175 2 0.750 1 0.790 0 1.070 1 1.425 3 2.565 0 1.490 0 0.425 2 0.640 0 0.605 3 2.530 2 2.210
doc_161406544.xls