Editing Arctic Shores
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|Risk-free rate (%) | |Risk-free rate (%) | ||
| | |3.488% | ||
|Here, the risk free rate is the US 30 year treasury bond, and is calculated as at | |Here, the risk free rate is the US 30 year treasury bond, and is calculated as at 16th December 2022. Research suggests that for the risk-free rate, it's best to use one that has the same or similar maturity to the estimated remaining lifespan of the company. Here, we have assumed that the estimated lifespan of the company is 50 years, so we have used the longest maturity, which is 30 years. | ||
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|Beta | |Beta | ||
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|Equity risk premium (%) | |Equity risk premium (%) | ||
| | |5.26 | ||
|Here, the equity risk premium is in relation to the global region, and is calculated as at 1st | |Here, the equity risk premium is in relation to the global region, and is calculated as at 1st January 2022. Research suggests that for the region of equity risk premium, it's best to use one that is the same or similar to the region of the beta market portfolio. Here, the region of the beta market portfolio is the world/global, so we have used the world/global region for the equity risk premium. | ||
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|Cost of equity (%) | |Cost of equity (%) |