Duff & Phelps Decreases U.S. Normalized Risk-Free Rate from 4.0% to 3.5%

Duff & Phelps regularly reviews fluctuations in global economic and financial market conditions that warrant a periodic reassessment of the Equity Risk Premium (ERP), a key input used to calculate the cost of capital within the context of the Capital Asset Pricing Model (CAPM) and other models for developing discount rates. Based upon current market conditions, Duff & Phelps is reaffirming its U.S. Equity Risk Premium recommendation of 5.5% to be used in conjunction with a normalized risk-free rate. However, based on declining real interest rates and long term growth estimates for the U.S. economy, we are lowering the U.S. normalized risk-free rate from 4.0% to 3.5% when developing discount rates as of November 15, 2016 and thereafter, until further guidance is issued.