=+b The risk-free return on government securities is currently 6.5 per cent, the risk premium for shares above the risk-free rate of return has been 5 per cent per annum and Vale is in a risk class of shares which suggests that the average risk premium of 5 should be adjusted by a factor of 0.9. The company's profits after tax per share are expected to continue their historic growth path, and dividends will remain at the same proportion of earnings as this year.