Quote Originally Posted by forest View Post
Snoopy wrote:
"We guess that the CDC assets in operation today earn 10% on the original capital outlay. This means the price of assets on the books is $97.4m/0.1= $974m"

Hi Snoopy, in the roadshow presentation from memory it was mentioned that CDC presently return between 10 and 15% on it's different assets, so 10% a bit low I think. Maybe halfway 12.5 % is a better estimate as a average.
Let's go with your suggestion forest, and see where that leads us: "This means the price of assets on the books is $97.4m/0.125= $780m"

Taking that $780m and depreciating it linearly over 40 years gives an annual depreciation and amortisation charge of: $780m/40= $19.5m

SNOOPY