valuation ladder: How far below The next rung down on the valuation ladder is the regulated asset base, as used by regulators when they calculate returns on capital, but Labour appears not to fancy that formula either, according to The Guardian. Instead, it is pushing shareholder equity otherwise known as retained earnings, where the numbers can be substantially smaller. If Labour comes to power, the promised vast nationalisation programme would proceed at prices to be decided by parliament . Translation compensation would be set below market prices. Even then, it would seek to make deductions for asset stripping and state subsidies since privatisation. National Grid's electricity transmission business the pylons and wires part showed regulated assets of 13bn in its last set of accounts. Crunch a few numbers to get a feel for how severe the haircuts for shareholders could be.
(news.financializer.com). As
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