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3) Calculation of Discount Rate r with CAPM. Equity Beta: 1.23 U.K. Government Bond Yield: 2.62% Market Risk Premium: 6.35% 4) Discounting Free Cash Flow

3) Calculation of Discount Rate r with CAPM. Equity Beta: 1.23 U.K. Government Bond Yield: 2.62% Market Risk Premium: 6.35% 4) Discounting Free Cash Flow to Equity with r. PV = SAN NI N10 (1 + terminal growth rate) (1 + r)" (re-terminal growth rate) + (1 + r.)

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