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June 2023
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Geared and ungeared beta6/1/2023 All other things being equal, this will lead to similar discount rates and therefore little change to asset values over the period. This chart shows that there has been limited movement over the period save for a small increase in the risk free rate and corresponding decrease in the credit spread (difference between the risk free rate and the large business weighted average lending rate) and a small increase in market gearing, primarily due to changes in the energy industry. The following chart presents a summary of the overall change in weighted average cost of capital (WACC) for the market as a whole. With impairment testing and fair value measurement once again a key focus for ASIC in relation to the 31 December 2015 reporting period, you and your board will want to ensure the process is robust, including selecting discount rates that are reasonable.
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