WC
ZYL clearly states that they use an 8% discount rate based on 100% equity
whilst the cost of equity is linked to the risk free rate (falling), it is also linked to market volatility (rising)not to mention a country risk premium also needs to be applied (and at the moment the premium for South Africa would be high)
so IMO, 8% is too low, 10% accesptable, reality is probably closer to 11-12%
bfs, page-27
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