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Input Methodologies Projects

2015/16 input methodologies review

Process and consultation

Cost of capital

Cost of capital

One of the key topics for the Input Methodologies (IM) review was the cost of capital.

download Transpower submission on post WACC workshop documents – October 2016

( 657 KB, PDF )

download WACC workshop transcript – September 2016

( 511 KB, PDF )

download Powerco – explanation of bond to swap spread data analysis – 28 September 2016

download Powerco – Bond to Swap spread data analysis – 28 September 2016

( 62 KB, XLSX )

download Oxera – debt beta note – 28 September 2016

download Response to ENA letter on WACC issues – 28 September 2016

( 241 KB, PDF )

download ENA – WACC letter to Commerce Commission – September 28 2016

( 431 KB, PDF )

download ENA – CEG report responding to Oxera debt beta note – October 2016

( 1.1 MB, PDF )

download Contact – response to post WACC workshop documents – 5 October 2016

( 115 KB, PDF )

download Aurora comments on Transpower submission on cost of debt – October 2016

( 679 KB, PDF )

download Response to Transpower letter – 14 October 2016

( 197 KB, PDF )

download Transpower – Explanation of Frontier report corrections – October 2016

( 130 KB, PDF )

download Transpower – Corrected Frontier memo on Dr Lally Appendix – October 2016

( 266 KB, PDF )

download Wellington Electricity Lines Ltd comments on Transpower submission – October 2016

( 1.4 MB, PDF )

download Vector comments on Transpower submission on cost of debt – October 2016

( 167 KB, PDF )

download ENA comments on Transpower submission on cost of debt – October 2016

( 517 KB, PDF )

download Contact comments on Transpower submission on cost of debt – October 2016

( 168 KB, PDF )

download MEUG – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – 25 August 2016

( 166 KB, PDF )

download Vector – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – 25 August 2016

( 232 KB, PDF )

download Frontier Economics (report prepared for Transpower) – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – August 2016

( 778 KB, PDF )

download Transpower – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – 25 August 2016

( 1.2 MB, PDF )

download Houston Kemp (report prepared for Powerco) – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – 25 August 2016

( 616 KB, PDF )

download Powerco – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – 25 August 2016

( 237 KB, PDF )

download Pat Duignan – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – 24 August 2016

( 112 KB, PDF )

download NZ Airports – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – August 2016

( 138 KB, PDF )

download MGUG – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – 25 August 2016

( 385 KB, PDF )

download MEUG – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) estimates of impact of changes in WACC – August 2016

( 36 KB, XLSX )

download Auckland Airport – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) parameters – 25 August 2016

( 270 KB, PDF )

download First State Investments – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – 25 August 2016

( 132 KB, PDF )

download First Gas – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – 25 August 2016

( 347 KB, PDF )

download CEG (report prepared for ENA) – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – August 2016

( 745 KB, PDF )

download CEG (report prepared for ENA) – IM review draft decisions cross-submission on debt characteristics – Topic paper 4 (Cost of capital) – 25 August 2016

( 274 KB, PDF )

download CEG (report prepared for ENA) – IM review draft decisions cross-submission on Oxera – Topic paper 4 (Cost of capital) – 25 August 2016

( 1.4 MB, PDF )

download ENA – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – 25 August 2016

( 957 KB, PDF )

download Contact Energy – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – 25 August 2016

( 624 KB, PDF )

download Auckland Uniservices Ltd (report prepared for AIAL) – IM review draft decisions cross-submission – Topic paper 4 (Cost of capital) – 25 August 2016

( 292 KB, PDF )

download IATA – IM review draft decisions cross-submission – 18 August 2016

( 417 KB, PDF )

download Wellington Airport – IM review draft decisions cross-submission and draft determinations submission – 18 August 2016

( 135 KB, PDF )

download Vector – IM review draft decisions cross-submission – 18 August 2016

( 602 KB, PDF )

download Unison – IM review draft decisions cross-submission – Emerging technologies – 18 August 2016

( 541 KB, PDF )

download Progressive Enterprises – IM review draft decisions cross-submission – 18 August 2016

( 258 KB, PDF )

download Powerco – IM review draft decisions cross-submission – 18 August 2016

download Oji Fibre Solutions – IM review draft decisions cross-submission – Excluding cost of capital – 18 August 2016

( 213 KB, PDF )

download NZ Airports – IM review draft decisions cross-submission – 18 August 2016

( 510 KB, PDF )

download MGUG – IM review draft decisions cross-submission – Excluding cost of capital – 18 August 2016

( 348 KB, PDF )

download NZIER (report prepared for MEUG) – IM review draft decisions cross-submission – Form of control – 18 August 2016

( 781 KB, PDF )

download MEUG – IM review draft decisions cross-submission – Excluding cost of capital – 18 August 2016

( 186 KB, PDF )

download Methanex – IM review draft decisions cross-submission and Gas DPP implementation paper – 18 August 2016

( 147 KB, PDF )

download Mercury – IM review draft decisions cross-submission – Emerging technologies – 18 August 2016

( 175 KB, PDF )

download Air New Zealand – IM review draft decisions cross-submission – 18 August 2016

download First Gas – IM review draft decisions cross-submission (excluding cost of capital) and Gas DPP implementation paper – 18 August 2016

( 161 KB, PDF )

download ERANZ – IM review draft decisions cross-submission – Emerging technologies – 18 August 2016

( 805 KB, PDF )

download Russell McVeagh (report prepared for ENA) – IM review draft decisions cross-submission – Review of Alan Lear advice on definition of electricity lines services – 17 August 2016

( 118 KB, PDF )

download ENA – IM review draft decisions cross-submission – 18 August 2016

( 845 KB, PDF )

download Counties Power – IM review draft decisions cross-submission – Related parties – 18 August 2016

( 321 KB, PDF )

download Contact Energy – IM review draft decisions cross-submission – 18 August 2016

( 704 KB, PDF )

download Covec (report prepared for BARNZ) – IM review draft decisions cross-submission – Airport WACC issues – 18 August 2016

( 439 KB, PDF )

download BARNZ – IM review draft decisions cross-submission – 18 August 2016

( 596 KB, PDF )

download Aurora – IM review draft decisions cross-submission – 18 August 2016

( 762 KB, PDF )

download Auckland Airport – IM review draft decisions cross-submission and draft ID and IM determinations – 18 August 2016

download Asplundh – IM review draft decisions cross-submission – Related parties – 18 August 2016

( 131 KB, PDF )

download Auckland Airport – IM review decisions cross-submission and draft ID and IM determinations – 18 August 2016

download BARNZ – IM review draft determinations submission – Letter re IM amendments – 18 August 2016

( 114 KB, PDF )

download BARNZ submission – [DRAFT] Commerce Act (Specified Airport Services Input Methodologies) Determination 2010 – 18 August 2016

( 943 KB, PDF )

download BARNZ – IM review draft determinations submission – Letter re ID amendments – 18 August 2016

( 112 KB, PDF )

download BARNZ submission – [DRAFT] Amendment to the Commerce Act (Specified Airport Services Information Disclosure) Determination 2010 – 18 August 2016

( 1.7 MB, PDF )

download ENA – IM review draft determinations submission – Letter re IM amendments – 18 August 2016

( 364 KB, PDF )

download ENA submission – [DRAFT] Electricity Distribution Services Input Methodologies Determination 2012 – 18 August 2016

download First Gas – IM review draft determinations submission – [DRAFT] Gas transmission and gas distribution amendments – 18 August 2016

( 134 KB, PDF )

download NZ Airports submission – [DRAFT] ID and IM determinations – 18 August 2016

( 2.5 MB, PDF )

download NZ Airports – IM review draft determinations submission – Appendix three pricing templates mark up – 18 August 2016

( 151 KB, XLSX )

download NZ Airports – IM review draft determinations submission – Appendix four annual templates mark up – 18 August 2016

( 997 KB, XLSX )

download Powerco – IM review draft determinations submission – 18 August 2016

( 179 KB, PDF )

download Transpower – IM review draft determinations submission – Letter re IM amendments – 11 August 2016

( 344 KB, PDF )

download Transpower submission – [DRAFT] Transpower Input Methodologies Determination – 11 August 2016

( 1.1 MB, PDF )

download Vector – IM review draft determinations submission – 18 August 2016

( 328 KB, PDF )

download Pat Duignan – Submission on IM review draft decision – 30 June 2016

( 268 KB, PDF )

download Meridian – Submission on IM review draft decision – 4 August 2016

( 275 KB, PDF )

download Methanex – Submission on IM review draft decision and Gas DPP implementation paper – 4 August 2016

( 189 KB, PDF )

download MEUG – Submission on IM review draft decision – 4 August 2016

( 240 KB, PDF )

download MEUG – Submission on IM review draft decision – NZIER Report – Form of control for EDBs – 4 August 2016

( 951 KB, PDF )

download MEUG – Submission on IM review draft decision – IWA Report to MEUG – 4 August 2016

( 508 KB, PDF )

download MEUG – Submission on IM review draft decision – IWA Report Appendix A – Risk Allocation Example – 4 August 2016

( 265 KB, PDF )

download MEUG – Submission on IM review draft decision – Draft Transpower Works Agreement – 4 August 2016

( 703 KB, PDF )

download MEUG – Submission on IM review draft decision – New Transpower Works Agreement – Consultation guide – 4 August 2016

( 177 KB, PDF )

download MGUG – Submission on IM review draft decision – 4 August 2016

( 517 KB, PDF )

download Molly Melhuish – Submission on IM review draft decision – 4 August 2016

( 129 KB, PDF )

download Molly Melhuish – Submission on IM review draft decision – 17 June 2016

( 209 KB, PDF )

download Network Tasman Ltd – Submission on IM review draft decision – 4 August 2016

( 197 KB, PDF )

download NZ Airports Association – Submission on IM review draft decision – 4 August 2016

( 876 KB, PDF )

download Orion – Submission on IM review draft decision – 4 August 2016

( 560 KB, PDF )

download Mercury – Submission on IM review draft decision – Emerging technologies – 4 August 2016

( 135 KB, PDF )

download Pioneer Energy – Submission on IM review draft decision – Related party transactions – 4 August 2016

( 180 KB, PDF )

download Powerco – Submission on IM review draft decision – 4 August 2016

( 901 KB, PDF )

download Powerco – Submission on IM review draft decision – Houston Kemp Report – 4 August 2016

( 1.2 MB, PDF )

download PwC Submission on IM review draft decision – 4 August 2016

( 667 KB, PDF )

download Transpower – Submission on IM review draft decision – 4 August 2016

( 839 KB, PDF )

download Transpower – Submission on IM review draft decision – Appendix A – Frontier Report – 4 August 2016

( 1.2 MB, PDF )

download Trustpower – Submission on IM review draft decision – 4 August 2016

( 480 KB, PDF )

download Trustpower – Submission on IM review draft decision – Allan Carvell – DGPP Incentives Report – 4 August 2016

( 424 KB, PDF )

download Trustpower – Submission on IM review draft decision – Houston Kemp – Assessment of EA's DGPP proposal – 4 August 2016

( 1.1 MB, PDF )

download Unison – Submission on IM review draft decision – 4 August 2016

( 520 KB, PDF )

download Vector – Submission on IM review draft decision – 4 August 2016

( 772 KB, PDF )

download Wellington Airport – Submission on IM review draft decision – 4 August 2016 (corrected reference)

( 183 KB, PDF )

download Wellington Electricity Lines Ltd – Submission on IM review draft decision – 4 August 2016

( 2.9 MB, PDF )

download ENA – Submission on IM review draft decision – Form of control and RAB indexation – 4 August 2016

( 959 KB, PDF )

download Air New Zealand – Submission on IM review draft decision – 4 August 2016

download Alpine Energy – Submission on IM review draft decision – 4 August 2016

( 557 KB, PDF )

download Auckland Airport – Submission on IM review draft decision – 4 August 2016

( 271 KB, PDF )

download Aurora – Submission on IM review draft decision – 4 August 2016

( 775 KB, PDF )

download BARNZ – Submission on IM review draft decision – 4 August 2016

( 281 KB, PDF )

download BARNZ – Submission on IM review draft decision – Proposed IM changes – 4 August

( 599 KB, PDF )

download Christchurch Airport – Submission on IM review draft decision – 4 August 2016

( 1.5 MB, PDF )

download Contact Energy – Submission on IM review draft decision – 4 August 2016

( 4.7 MB, PDF )

download TDB – underlying data of ComCom comparitor companies – 18 August 2016

( 470 KB, XLSX )

download Eastland – Submission on IM review draft decision – 4 August 2016

( 120 KB, PDF )

download ENA – Submission on IM review draft decision – Cost of capital – 4 August 2016

( 1.2 MB, PDF )

download ENA – Submission on IM review draft decision – CEG memo ENA debt characteristics – 4 August 2016

( 564 KB, PDF )

download ENA – Submission on IM review draft decision – CEG report on TCSD approach – 4 August 2016

( 1.2 MB, PDF )

download ENA – Submission on IM review draft decision – CPP Requirements – 4 August 2016

( 870 KB, PDF )

download Asplundh Submission on IM review draft decision – Related parties – 12 August 2016

( 393 KB, PDF )

download ENA – Submission on IM review draft decision – Framework – 4 August 2016

( 736 KB, PDF )

download ENA – Submission on IM review draft decision – Impact of emerging technologies – 4 August 2016

( 699 KB, PDF )

download ENA – Submission on IM review draft decision – Related party transactions – 4 August 2016

( 783 KB, PDF )

download ENA – Submission on IM review draft decision – Report on the IM review – 4 August 2016

( 764 KB, PDF )

download ERANZ – Submission on IM review draft decision – Emerging technologies – 4 August 2016 [includes reports by Alan Lear (Barrister) and Castalia Strategic Advisors]

download First Gas – Submission on IM review draft decision – Cost of Capital – 4 August 2016

( 1.5 MB, PDF )

download First Gas – Submission on IM review draft decision – Final Oxera report – 4 August 2016

( 1.3 MB, PDF )

download First Gas – Submission on IM review draft decision – Asset beta analysis – 4 August 2016

( 239 KB, XLSX )

download First Gas – Submission on IM review draft decision – non-WACC – 4 August 2016

( 170 KB, PDF )

download First State Investments – Submission on IM review draft decision – Cost of Capital – 4 August 2016

( 309 KB, PDF )

download GasNet – Submission on IM review draft decision and Gas DPP implementation paper – 1 August 2016

( 100 KB, PDF )

download Genesis Energy – Submission on IM review draft decision – Emerging technologies – 4 August 2016

( 321 KB, PDF )

download IATA – Submission on IM review draft decision – 4 August 2016

( 2.9 MB, PDF )

download Input methodologies review - Leverage for energy and airports comparator - 10 August 2016

( 710 KB, XLSX )

download Input methodologies review – Companies excluded from energy asset beta comparator sample – 29 July 2016

( 700 KB, XLSX )

download Input methodologies review – Response to NSS data requests – 27 July 2016

( 1.3 MB, XLSX )

download Input methodologies review draft decisions – Response to TCSD data requests – 15 July 2016

( 1022 KB, XLSX )

download Input methodologies review draft decisions – Asset beta spreadsheet – 11 July 2016

download Input methodologies review draft decisions – Topic paper 4 – Cost of capital issues – 16 June 2016

( 2.5 MB, PDF )

download Input methodologies review draft decisions – Cost of capital calculations spreadsheet – 16 June 2016

( 893 KB, XLSX )

download Input methodologies review draft decisions – Topic paper 6 – WACC percentile for airports – 16 June 2016

( 615 KB, PDF )

download Dr Lally’s expert advice on the cost of debt, asset beta adjustments for GPBs, RAB indexation and inflation risk, and TAMRP – 22 May 2016

( 519 KB, PDF )

download NZ Airports Assn – Comments on Dr Lallys review of WACC issues – 24 March 2016

( 394 KB, PDF )

download WELL – Comments on Dr Lallys review of WACC issues – 24 March 2016

( 1.4 MB, PDF )

download Vector – Comments on Dr Lallys review of WACC issues – Appendix 1 CEG Report – March 2016

( 907 KB, PDF )

download Vector – Comments on Dr Lallys review of WACC issues – 24 March 2016

download Transpower – Comments on Dr Lallys review of WACC issues – 24 March 2016

( 404 KB, PDF )

download PwC – Comments on Dr Lallys review of WACC issues – 24 March 2016

( 197 KB, PDF )

download HoustonKemp for Powerco – Comments on Dr Lallys review of WACC issues – May 2016

( 930 KB, PDF )

download Powerco – Comments on Dr Lallys review of WACC issues – 24 March 2016

( 329 KB, PDF )

download Orion – Comments on Dr Lallys review of WACC issues – 24 March 2016

( 194 KB, PDF )

download Oji Fibre Solutions – Comments on Dr Lallys review of WACC issues – 24 March 2016

( 205 KB, PDF )

download BARNZ – comments on Dr Lallys review of WACC issues – 24 March 2016

( 315 KB, PDF )

download MGUG – Comments on Dr Lallys review of WACC issues – 24 March 2016

( 240 KB, PDF )

download MEUG – Comments on Dr Lallys review of WACC issues – 24 March 2016

( 242 KB, PDF )

download MDL – Comments on Dr Lallys review of WACC issues – 24 March 2016

( 482 KB, PDF )

download Fonterra – Comments on Dr Lallys review of WACC issues – 24 March 2016

( 130 KB, PDF )

download First State Investments – comments on Dr Lallys review of WACC issues – Appendix B NERA – 24 March 2016

( 343 KB, PDF )

download First State Investments – comments on Dr Lallys review of WACC issues – Appendix A Incenta – 24 March 2016

( 962 KB, PDF )

download First State Investments – comments on Dr Lallys review of WACC issues cover letter – 24 March 2016

( 460 KB, PDF )

download ENA – comments on Dr Lallys review of WACC issues – 24 March 2016

( 422 KB, PDF )

download Contact Energy – comments on Dr Lallys review of WACC issues – 24 March 2016

( 390 KB, PDF )

download Air NZ submission – Airport WACC percentile – 11 March 2016

( 161 KB, PDF )

download Auckland Airport submission – Airport WACC percentile – 16 March 2016

( 348 KB, PDF )

download ARNZ submission – Airport WACC percentile – 11 March 2016

( 223 KB, PDF )

download BARNZ submission (attachment) – Covec – 9 March 2016

( 429 KB, PDF )

download CIAL submission – Airport WACC percentile – 16 March 2016

( 365 KB, PDF )

download IATA submission – Airport WACC percentile – 16 March 2016

( 872 KB, PDF )

download Infratil submission – Airport WACC percentile – 16 March 2016

( 925 KB, PDF )

download WIAL submission – Airport WACC percentile – 16 March 2016

( 110 KB, PDF )

download MEUG submission – Airport WACC percentile – 11 March 2016

( 150 KB, PDF )

download NZ Airports submission – Airport WACC percentile – 16 March 2016

( 217 KB, PDF )

download NZ Airports submission (attachment) – Sapere – Asymmetric impact on consumers from underinvestment by airports – 17 March 2016

( 385 KB, PDF )

download NZ Airports submission (attachment) – Sapere – The distance between the allowed rate of return and the cost of capital – 16 March 2016

( 191 KB, PDF )

download Transpower submission – Airport WACC percentile – 16 March 2016

( 349 KB, PDF )

download Dr Lally’s expert advice on asset beta adjustments and Black’s simple discounting rule – 25 February 2016

( 330 KB, PDF )

download Input methodologies review – Professor Yarrow's expert advice on airport WACC percentile – February 2016

( 176 KB, PDF )

download Terms of reference for expert advice on airport WACC percentile – Professor Yarrow – February 2016

download Input methodologies review – Emerging views on airport WACC percentile – February 2016

download WELL submission (attachment) – CEG, Inflation – revaluations and revenue indexation – February 2016

( 657 KB, PDF )

download PwC submission – Cost of capital update paper – 5 February 2016

( 500 KB, PDF )

download Transpower submission – Cost of capital update paper – 5 February 2016

( 1.8 MB, PDF )

download Transpower submission cover letter – Cost of capital update paper – 5 February 2016

( 392 KB, PDF )

download Frontier Economics (on behalf of Transpower) submission – cost of capital update paper – 5 February 2016

( 1.7 MB, PDF )

download Vector submission – cost of capital update paper – 9 February 2016

( 371 KB, PDF )

download WELL submission – cost of capital update paper – 9 February 2016

( 1.4 MB, PDF )

download WELL submission (attachment) – CEG, Asset beta – February 2016

( 1.5 MB, PDF )

download WELL submission (attachment) – CEG, Critique of the AER's JGN draft decision on the cost of debt – April 2015

( 2.2 MB, PDF )

download Powerco submission cover letter – Cost of capital update paper – 5 February 2016

download WELL submission (attachment) – CEG, Key reforms to rate of return under the IMs – February 2016

( 1.7 MB, PDF )

download WELL submission (attachment) – CEG, Use of Black's simple discount rule in regulatory proceedings – February 2016

( 663 KB, PDF )

download WELL submission (attachment) – Incenta, Term of the risk free rate for cost of equity – June 2013

( 1.2 MB, PDF )

download WELL submission (attachment) – SFG, Evidence on the required return on equity from independent expert reports – 24 June 2013

( 827 KB, PDF )

download WELL submission (attachment) – SFG, Response to the QCA approach to setting the risk-free rate, report for Aurizon – 25 March 2013

( 397 KB, PDF )

download WELL submission (attachment) – SFG, Response to the QCA discussion paper on risk free rate and MRP – 19 March 2013

( 702 KB, PDF )

download WIAL submission – Cost of capital update paper – 5 February 2016

download Infratil submission – Cost of capital update paper – 5 February 2016

( 1.8 MB, PDF )

download BARNZ submission – Cost of capital update paper – 5 February 2016

( 260 KB, PDF )

download Colonial submission – Cost of capital update paper – 5 February 2016

( 577 KB, PDF )

download Contact Energy submission – Cost of capital update paper – 5 February 2016

( 1.5 MB, PDF )

download ENA submission – Cost of capital update paper – 9 February 2016

( 232 KB, PDF )

download ENA submission (attachment) – CEG, Asset beta – February 2016

( 1.5 MB, PDF )

download ENA submission (attachment) – CEG, Inflation – Revaluations and revenue indexation – February 2016

( 657 KB, PDF )

download ENA submission (attachment) – CEG, Key reforms to rate of return under the IMs – February 2016

( 1.6 MB, PDF )

download ENA submission (attachment) – CEG, Use of Black's simple discount rule in regulatory proceedings – February 2016

( 663 KB, PDF )

download Aurora submission – Cost of capital update paper – 5 February 2016

( 834 KB, PDF )

download MDL submission – Cost of capital update paper – 5 February 2016

( 150 KB, PDF )

download MEUG submission – Cost of capital update paper – 5 February 2016

( 167 KB, PDF )

download MEUG (attachment) – Craigs Investment Partners, Vector – 9 November 2015

( 868 KB, PDF )

download MGUG submission – Cost of capital update paper – 5 February 2016

( 378 KB, PDF )

download NZAA submission – Cost of capital update paper – 5 February 2016

( 315 KB, PDF )

download Orion submission – Cost of capital update paper – 5 February 2016

( 307 KB, PDF )

download Powerco submission – Cost of capital update paper – 5 February 2016

( 727 KB, PDF )

download Terms of Reference for expert advice on cost of capital topics – 22 December 2015

( 251 KB, PDF )

download Input methodologies review – International comparison of regulatory precedent on the weighted average cost of capital – 11 December 2015

( 613 KB, PDF )

download Input methodologies review – The cost of capital update paper – 30 November 2015

( 793 KB, PDF )

download Complications arising from the option to apply for a CPP – Dr Martin Lally – 18 September 2015

( 282 KB, PDF )

The areas of focus included:

updating our estimates of beta and leverage to reflect more up-to-date information for comparable companies
the use of trailing averages as an alternative to prevailing rates when calculating the cost of debt
the use of annual indexation in updating the risk-free rate
compensating for efficiently incurred longer-term debt (including the appropriateness of the Term Credit Spread Differential)
the impact of the weighted average cost of capital (WACC) on incentives to apply for a customised price-quality path
using Black’s Simple Discount Rule as a potential cross-check for the Simplified Brennan-Lally Capital Asset Pricing Model (SBL-CAPM)
issues related to the airport WACC percentile.