{
  "url": "https://openlegislation.uk/eu-decision-2013-126/annex-I/appendix",
  "json_url": "https://openlegislation.uk/eu-decision-2013-126/annex-I/appendix.json",
  "legislation": "eudn/2013/126",
  "legislation_title": "Commission Decision of 8 May 2012 on State aid SA.22668 (C 8/08 (ex NN 4/08)) (notified under document C(2012) 3025) (Only the Spanish text is authentic) (Text with EEA relevance) (2013/126/EU)",
  "legislation_url": "https://openlegislation.uk/eu-decision-2013-126",
  "path": "annex/I/appendix",
  "kind": "appendix",
  "number": null,
  "heading": null,
  "text": "In order to finance a project, investors need to invest some capital. Such capital has a cost. This is the cost of capital.\nTypically, there are 2 broad sources of capital:\nEquity capital (E)\nFinancial capital/debt) (D)\nThe sum of equity capital and debt capital gives us the total capital (C), expressed in EUR. Each of these 2 sources of capital has a certain cost. We note:\nKe the cost of equity capital, expressed in %;\nKd the cost of financial capital (debt), expressed in %.\nThe total cost of capital is therefore the weighted average cost of capital (WACC), taking into account the proportion of equity capital and the proportion of debt capital. We have therefore:\nWACC = K e E C + K d D C\nNote also that Kd and Ke are the expected cost of financial capital and of equity capital, and not the historical cost.\nTaking into account the tax advantages of debt financing, and assuming T is the tax rate applicable to CDL, we have:\nWACC = K e E C + K d D C 1 – T\nIn the particular case of CDL, no mention of debt is made in the 2000 business plan. Since the project is fully financed with equity capital we have the following:\nWACC = Ke",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudn/2013/126/annex/I/appendix",
    "retrieved_at": "2026-11-01T15:15:08.984307+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}