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Our 3000p target price equates to a 2015 enterprise value/earnings before interest and tax of 25 times and would require a terminal growth rate assumption of around 3%, which we think is punchy enough.
His second step was to require public sector employers to increase their pension contributions by £2bn following an increase in the "discount rate" (the interest rate assumption used to assess pension liabilities) for public sector pension schemes.
This again contradicts the previous optimal sum rate assumption.
This obviously contradicts the previous optimal sum rate assumption.
On balance, this leads us to increase our long-term revenue growth rate assumption".
As a by-product, we do classify the solutions for Q="1 solutions on Sn as well as on Rn with necessary growth rate assumption.
Similar(37)
The difference in the two figures is primarily because of different interest rate assumptions.
A company spokeswoman said the difference represented different tax treatments and interest rate assumptions on inter-company debt.
Interest rate assumptions are especially powerful in pension calculations, and the most important ones are today a matter of statute -- the same statute Congress is now being asked to modify.
One measure, passed by the House in October, would allow companies to make more favorable interest rate assumptions for the next two years while a panel works on broad changes to the pension funding rules.
The company set its exchange rate assumptions for the business year ending in December at ¥85 to the dollar and ¥115 to the euro, weaker than the average last year of ¥79.96 per dollar and ¥102.8 per euro.
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