{"id":183919,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/cost-of-equity-of-meridian-energy"},"modified":"2018-10-24T09:31:54","modified_gmt":"2018-10-24T09:31:54","slug":"cost-of-equity-of-meridian-energy","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/cost-of-equity-of-meridian-energy\/","title":{"rendered":"Cost of Equity of Meridian Energy"},"content":{"rendered":"<ul>\n<li>Assume that the risk premium for New Zealand stock market is 5% p.a.. Go to the NZX debt market website for all traded bonds (<a href=\"https:\/\/www.nzx.com\/markets\/nzdx\/bonds\">https:\/\/www.nzx.com\/markets\/nzdx\/bonds<\/a>) to obtain New Zealand risk-free rate as of 27<sup>th<\/sup> Scroll down the window to find the government bond with the longest maturity (GOV410). Access the link to this bond, scroll down the window and click on the button \u201cLoad interactive chart\u201d on the chart titled \u201cYield History\u201d. Now you can slide the red line across the chart to obtain the yield on 27<sup>th<\/sup> April. Record this yield as the risk-free rate. Apply the capital asset pricing model to estimate the cost of equity of Meridian Energy.<\/li>\n<\/ul>\n<table width=\"547\">\n<tbody>\n<tr>\n<td width=\"350\">Meridian Energy\u2019s Equity Beta<\/td>\n<td width=\"198\"><\/td>\n<\/tr>\n<tr>\n<td width=\"350\">NZ Market Risk&nbsp; Premium<\/td>\n<td width=\"198\"><\/td>\n<\/tr>\n<tr>\n<td width=\"350\">Risk free rate (government stock yield)<\/td>\n<td width=\"198\"><\/td>\n<\/tr>\n<tr>\n<td width=\"350\">Estimate date<\/td>\n<td width=\"198\">27<sup>th<\/sup> April 2016<\/td>\n<\/tr>\n<tr>\n<td width=\"350\">Cost of equity<\/td>\n<td width=\"198\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Assume that the risk premium for New Zealand stock market is 5% p.a.. Go to the NZX debt market website for all traded bonds (https:\/\/www.nzx.com\/markets\/nzdx\/bonds) to obtain New Zealand risk-free rate as of 27th Scroll down the window to find <a href=\"https:\/\/www.benedictsol.com\/blogs\/cost-of-equity-of-meridian-energy\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-183919","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/183919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=183919"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/183919\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=183919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=183919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=183919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}