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Interest in Germany: ~0-1%, expected inflation: 1-2%, terminal value: X unknown (but not 0). Just adding these parameters would change the conclusion of your va
by wjnc 7y ago
Interest in Germany: ~0-1%, expected inflation: 1-2%, terminal value: X unknown (but not 0). Just adding these parameters would change the conclusion of your valuation model significantly. Secondly losses are not subsidies. Subsidies are what governments dole out, losses are for investors and companies.
- hobofan 7y agoI don't know the specifics, but there are subsidies in place through the EEG[0] to prevent such losses. In general energy also seems to be a low-risk business, where if the energy companies would ever loose money, they are either already covered by the government or can sue the government for losses due to changed regulations with a good chance of winning. [0]: https://en.wikipedia.org/wiki/German_Renewable_Energy_Sources_Act https://en.wikipedia.org/wiki/German_Renewable_Energy_Source...
- VyperCard 7y agoEEG Sites are phased out in favor of Direktvermartung though