Internal consistency of risk free rate and MRP in the CAPM

2009 Gilbert and Tobin, Australia
Cost of Capital
Advice in relation to the appeal by the above businesses of the AER determination. With
expert advice quoted approvingly in the ACT judgment in favour of the applicants.
2009 Philips Fox, Australia
Cost of Capital
Expert report submitted to the AER on the issue of how to estimate the cost of 10 year BBB+
debt (as required under the NER) given divergence between fair value estimates from the
Bloomberg and CBASpectrum data services. The context was a decision in relation to
Advanced Metering Infrastructure.
2009 Gas pipeline businesses, Australia
Cost of Capital
Advice on a range of factors relating to the cost of capital including debt and equity. .
2009 Herbert Geer and Rundle, Australia
Cost of Capital
Expert testimony to the Federal Court of Australia on alleged errors made by the Australian
Competition and Consumer Commission (ACCC) in estimating the cost of capital for Telstra
(the incumbent telecommunications provider). Testimony quoted approvingly in the
judgment.
2009 T-Mobile, European Union
Cost of Capital
Advice to T-Mobile (Deutsche Telekom) on the cost of capital for mobile operators operating
in Western Europe.
2009 Joint Industry Associations, Australia
Cost of Capital
Advising the Energy Networks Association on cost of capital issues in the context of the
Australian Energy Regulator (AER) five year review of the cost of capital in the NER.
Multiple reports covering issues such as: dividend growth estimates of the market risk
premium, appropriate selection of the risk free rate, appropriate term for the measurement of
equity and debt costs, impact of the financial crisis on the cost of capital, empirical testing of
the accuracy of the capital asset pricing model (CAPM), conceptual discussion of the
theoretical purity of the implementation of the CAPM in AER analysis.
2009 Telecom New Zealand, Australia
Cost of Capital
Advising Telecom New Zealand on cost of capital issues associated with the cost of providing
the New Zealand universal service obligation (TSO).
2009 Queensland Rail, Australia
Cost of Capital
Advising Queensland Rail on its cost of capital submission to the QCA.
2009 Gilbert + Tobin, Australia
Cost of Capital
Advising Gilbert+Tobin/Japanese Steel mills on competitive impact of proposed transactions
between BHPB and Rio Tinto. Including analysis of the impact of the global financial crisis
on this analysis. Reports provided to both Australian and European regulators.
2009 Gilbert and Tobin, Australia
Cost of Capital
Advice on estimation of the cost of capital in the context of the AER’s regulatory review of
revenues for ETSA, Ergon and Energex.
2008 Optus/TERRiA, Australia
Cost of Capital