Quote:
Originally Posted by Frequitude
Bingo, I'd also like to kindly request it be done at 5%.
O&G tends to use about 10% because that reflects the risk premium of the oil & gas industry. I am of the belief that the risk premium of a hockey team and arena ops is much lower. Not quite simply the cost of debt (~3%) but much closer than 10%.
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But this isn't a facility operation company. It's a group of men worth billions of dollars. They don't enter into 3% returns for their capital. I think 10% is very very conservative as a hurdle, plus I'm applying the same hurdle to the city.