Q » How should discount rates be adjusted in uncertain regulatory environments for utilities and infrastructure?
04 Nov, 2025
A » In uncertain regulatory environments, discount rates for utilities and infrastructure should be adjusted to reflect increased risk. This can be achieved by incorporating a risk premium into the rate, accounting for potential regulatory changes and their impact on cash flows. Additionally, scenario analysis can be used to model different regulatory outcomes, helping to determine an appropriate discount rate that considers both systemic and regulatory risks.
04 Nov, 2025
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