30 May 2007
COMMERCE COMMISSION V FONTERRA CO-OPERATIVE GROUP LIMITED SC 39/2006
- Citation
- COMMERCE COMMISSION V FONTERRA CO-OPERATIVE GROUP LIMITED SC 39/2006
- Court
- Supreme Court
Reg 9(1) of the Raw Milk Regulations requires the discount rate for calculating annualised share value to be the cost of Fonterra's equity capital (cost of equity), not the weighted average cost of capital; regs 9(1) and 9(2) must be read consistently and the discount must relate to the return on shareholders' equity, because annualised share value is a perpetuity representing return on equity.