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Our analysis in Appendices one demonstrates that the Midland Electrical power Methods experienced a WACC of 7.nine%. So as to aid much better calculation, realistic assumptions were produced that the chance absolutely free amount was assumed to get on thirty-many years treasury bonds, assuming a greatest produce to maturity. recommended you read Even further, taxes were regarded as a mean volume of taxes paid out One of the prior a few year and the industry risk top quality was regarded as at 5%.
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