Cap of cost of debt (interest rate), percent
| 2,532 % | The average interest rate during the most recent twelve-month period of long-term loans in euros given to non-financial corporations, as announced by the Bank of Lithuania, para 6 of Methodology on Rate of Return on Investments |
Return on equity, percent, Re (based on risk arithmetic average of unlevered beta (β) of utilities industries) | 4,325 % | Para 9 of Methodology on Rate of Return on Investments |
Return on equity, percent, Re (based on risk of unlevered beta (βU) of green & renewable energy industry) | 7,815 % | Para 9 of Methodology on Rate of Return on Investments |
Share of equity capital (optimal capital structure), WE | 0,5 | Para 11 of Methodology on Rate of Return on Investments |
Share of debt capital (optimal capital structure), WD | 0,5
| Para 11 of Methodology on Rate of Return on Investments |
Tax rate, m | 0,15 | The income tax rate applied in Lithuania |
Risk-free rate of return on investments, percent, Rf | 1,42 % | The arithmetic mean of the average weighted profitability of the auctions of the Government bonds denominated in Litas (till December 31,2014) and Euros (from January 1, 2015) with the maturity period of no less than 3468 days), held during the recent ten-year period. Para 9.1 of Methodology on Rate of Return on Investments |
Equity risk premium , percent, Rerp | 5,00 % | Para 9.2 of Methodology on Rate of Return on Investments |
Beta coefficient (unlevered β) | 0,581 | Arithmetic average of risk in the utilities industries of European countries, based on publicly available data sources (latest estimates of the relative risk published on A. Damodaran's website), Para 9.3.6 of Methodology on Rate of Return on Investments. |
Beta coefficient (unlevered βU) | 1,279 | Risk in the green & renewable energy industry of European countries, based on publicly available data sources (latest estimates of the relative risk published on A. Damodaran's website), Para 9.3.7 of Methodology on Rate of Return on Investments. |
Actual weighted average cost of debt capital in heating sector, percent | 1,972 % |
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