The Study Of Benchmark Yield In Coal Water Slurry Industry Based On Combining WACC And CAPM

At present, the Strategy of energy security and environment protection are twoissues which need to be solved urgently. Coal water slurry is a new type substitution ofoil and coal based fluid fuel with low pollution, which can relieve the ‘rich coal，littlegas, and meager oil’ energy structure and emerging environmental problems. However,the coal water slurry industry does not have high degree of marketization. As a keyeconomic evaluation parameter, benchmark yield is one of the most significant factorsin investing and constructing the coal water slurry projects. The lack of benchmark yielddata leads to the inaccurate and non-objective assessment of profitability, debt-payingability and risk resistance capacity in coal water slurry industry, which will impede itsmarketization.This thesis studies theories and models of benchmark yield in both domestic andoverseas, and summarizes merits and defects of mainstream methodologies. It aims atproviding the objective and accurate assessment of coal water slurry industry. Thedifficulty inevaluating benchmark yield in coal water slurry industry is the rate of returnon common stockholders’ equity which will be assessed by theory of assets pricing inthis study. In addition, the non-synchronous trading and unsystematic risk in stockmarket should be taken into account. The rate of return on common stockholders’ equityand the cost ratio of debt capital are significant for the benchmark yield in coal water slurry. Therefore, this thesis researches the benchmark yield in coal water slurry basedon the WACC and CAPM. Furthermore, it takes simulation test for typical subject andverifies the feasibility of this methodology.