As at 30 June 2009, the Cost of Capital Report uses the following input assumptions:
|
Risk free rate of return (five year bond)
|
Rf
|
5.5%
|
|
Marginal tax rate on debt
|
Tc
|
30.0%
|
|
Market risk premium
|
Rm-DmTm-Rf(1-Ti)
|
7.5%
|
|
Investor tax rate on equity
|
Ti
|
30.0%
|
|
Minimum asset beta adjustment
|
0.30
|