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WACC Calculation

Country
Dominican Republic
Argentina
United Kingdom
Brazil
Chile
Bangladesh
South Africa
Pakistan
Dominican Republic
India
Italy
USA
Ukraine
Georgia
Brazil

Rf
Risk premium
Unlevered
Beta
0.25
0.5
0.5
0.25
0.25
0.25
0.25
0.25
0.25
0.25
0.5
0.25
0.25
0.25
0.25

D/V

E/V = 1-D/V
35.1%
40.8%
29.5%
30.0%
35.2%
33.3%
32.9%
35.1%
28.7%
30.4%
42.5%
39.5%
36.5%
26.1%
32.2%

64.90%
59.20%
70.50%
70.00%
64.80%
66.70%
67.10%
64.90%
71.30%
69.60%
57.50%
60.50%
63.50%
73.90%
67.80%

4.50%
7%
Levered Beta = unlevered Sovereign
beta/(E/V)
Spread
0.385208012
0.844594595
0.709219858
0.357142857
0.385802469
0.374812594
0.372578241
0.385208012
0.350631136
0.359195402
0.869565217
0.41322314
0.393700787
0.338294993
0.368731563

8.93%
16.25%
0.00%
8.93%
1.73%
5.23%
3.14%
9.90%
8.93%
3.60%
0.14%
0.00%
9.98%
9.98%
8.93%

Cost of Equity = Rf +
beta*risk premium +
Sovereign spread

Default
Spread
3.57%
3.57%
3.57%
2.89%
4.34%
4.34%
4.34%
3.57%
1.85%
3.57%
4.34%
3.57%
3.57%
1.85%
1.85%

16.1265%
26.6622%
9.4645%
15.9300%
8.9306%
12.3537%
10.2480%
17.0965%
15.8844%
10.6144%
10.7270%
7.3926%
17.2359%
16.8481%
16.0111%

Cost of Debt = Rf +
Default Spread
17.00%
24.32%
8.07%
16.32%
10.57%
14.07%
11.98%
17.97%
15.28%
11.67%
8.98%
8.07%
18.05%
16.33%
15.28%

Tax Rate
25.0%
35.0%
0.0%
34.0%
17.0%
0.0%
25.0%
23.0%
25.0%
7.9%
35.0%
37.5%
30.0%
20.0%
34.0%

1-Tax Rate We
75.00%
65.00%
100.00%
66.00%
83.00%
100.00%
75.00%
77.00%
75.00%
92.10%
65.00%
62.50%
70.00%
80.00%
66.00%

64.90%
59.20%
70.50%
70.00%
64.80%
66.70%
67.10%
64.90%
71.30%
69.60%
57.50%
60.50%
63.50%
73.90%
67.80%

Wd
35.10%
40.80%
29.50%
30.00%
35.20%
33.30%
32.90%
35.10%
28.70%
30.40%
42.50%
39.50%
36.50%
26.10%
32.20%

WACC1
14.941%
22.234%
9.053%
14.382%
8.875%
12.925%
9.833%
15.952%
14.615%
10.655%
8.649%
6.465%
15.557%
15.860%
14.103%

Commodity

Contract enf./Legal

Counterparty

Currency

Regulatory

Country

Operational/
Technical

Construction

Risk Scores

Dominican Republic

Argentina

United Kingdom

Brazil

Chile

Bangladesh

South Africa

Pakistan

Dominican Republic

India

Italy

USA

Ukraine

Georgia

Brazil

Risk Score

Risk Score * 500bp


3
1.825
1.46
2.175
0.75
0.79
1.07
1.425
2.565
1.49
0.425
0.64
0.605
2.53
2.21

15%
9%
7%
11%
4%
4%
5%
7%
13%
7%
2%
3%
3%
13%
11%

Final WACC
29.9%
31.4%
16.4%
25.3%
12.6%
16.9%
15.2%
23.1%
27.4%
18.1%
10.8%
9.7%
18.6%
28.5%
25.2%