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AER - Rate of return -Term of the rate of return draft working paper May 2021(123454671)

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On 21 May 2021 the AER published a working paper on Term of the rate of return. The working paper seeks to:

  • Identify a suitable term for setting an efficient rate of return that contributes to achieving the NGO and NEO.
  • Examine if the terms for the return on equity, return on debt and expected inflation should align.
  • Ascertain the effect of a trailing average return on debt on the choice of term.

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AER

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