Discounted Cost-of-capital Formula for Year X
I am having issues getting to the correct discounted cost-of-capital values for each of the years in battlecard 10 (and by extension the risk margin is often wrong), so I wanted to confirm my calculations are correct.
If I wanted to calculate the discounted cost-of-capital for year X=SCR(R-i)(1-(risk free rate+illiquidity premium))^X
Is this correct? Thanks!
Comments
See the wiki solution here:
https://battleacts6us.ca/wiki6us/Odomirok.25-Solv2#:~:text=Here%27s%20a%20pdf,2017.Spring%20%2320
discounted cost-of-capital for year X = SCR (R-i) (discount rate)^X