| Cost of Capital (a) | Base Case | Case 6a |
Equity | 12.30% | $661,061 | $1,777,393 |
Net Debt | 8.00% | $1,400,000 | $283,668 |
EBITDA-2006 |
| $40,524 | $40,524 |
Net Debt divided by EBITDA |
| 35 | 7 |
Total Capitalization |
| $2,061,061 | $2,061,061 |
Weighted Cost of Capital |
| 9.38% | 11.71% |
Discounted Value of Cash Flows |
| $1,881,815 | $371,421 |
Concession Price as Multiple of EBITDA (b) |
| 63.1x | 12.5x |
(a) Represents the imputed cost of equity and debt for Skyway concession.
(b) Concession price equals the discounted cash flow value minus transaction fees.
Source: Authors' calculations.