Yes No Q55 Section 4.3.5.1 Projection of capital requirement - Should the projected future capital requirements reflect minimal, average, or optimal diversification benefits (considering a willing buyer which is likely to achieve a conceivable synergy from the transaction)? If how can the diversification benefit be reflected in the CoC MOCE calculation? “yes”, Yes No Q56 Section 4.3.5.1 Discount factor - If Market risks and most of the Credit risk are excluded from the projection of the future capital requirements as per the 2016 Field Testing Technical Specifications, does this imply that such MOCE only allows a recapitalisation where no Market risk and only limited Credit risk could be supported (ie with not enough resources to take on market risks)? If please explain. “no”, Yes No Q57 Section 4.3.5.1 Discount factor - If no Market risk and only limited Credit risk be supported by the level of recapitalisation allowed by the level of MOCE, then should the future return from invested assets of Market risk and Credit risk be the risk free rate? If please explain. “no”, Yes No Q58 Section 4.3.5.1 Discount factor - Assuming that the answers to the two questions above are then is it consistent to discount the projected future capital “yes” requirement by the risk free rate? If please provide an alternative suggestion with “no”, rationale. Yes No Q59 Section 4.3.5.1 Discount factor - Should the discount factor be linked in some way to the hurdle rate (cost of capital parameter)? If please provide an alternative “yes”, suggestion to discounting at risk free rate and the rationale.
Yes No Q55 Section 4.3.5.1 Projection of capital requirement - Should the projected future capital requirements reflect minimal, average, or optimal diversification benefits (considering a willing buyer which is likely to achieve a conceivable synergy from the transaction)? If “yes”, how can the diversification benefit be reflected in the CoC MOCE calculation? Yes No Q56 Section 4.3.5.1 Discount factor - If Market risks and most of the Credit risk are excluded from the projection of the future capital requirements as per the 2016 Field Testing Technical Specifications, does this imply that such MOCE only allows a recapitalisation where no Market risk and only limited Credit risk could be supported (ie with not enough resources to take on market risks)? If “no”, please explain. Yes No Q57 Section 4.3.5.1 Discount factor - If no Market risk and only limited Credit risk be supported by the level of recapitalisation allowed by the level of MOCE, then should the future return from invested assets of Market risk and Credit risk be the risk free rate? If “no”, please explain. Yes No Q58 Section 4.3.5.1 Discount factor - Assuming that the answers to the two questions above are “yes” then is it consistent to discount the projected future capital requirement by the risk free rate? If “no”, please provide an alternative suggestion with rationale. Yes No Q59 Section 4.3.5.1 Discount factor - Should the discount factor be linked in some way to the hurdle rate (cost of capital parameter)? If “yes”, please provide an alternative suggestion to discounting at risk free rate and the rationale.