STEM help / Data dialogs

Financial Data / Tax and Interest Rates

You enter an Interpolated Series to represent how you expect Tax rates, Dividend payments, and bank Deposit, Borrowing and Overdraft rates to change over the lifetime of the model.

Deposit Rate

The annual interest rate for surplus cash on deposit as liquid, short-term investments (typically marketable securities). This is the benefit received by the network from funds on deposit.

All rates are specified as proportions, e.g., an interest rate of 10% is specified as 0.1.

Default: 0.0.

Investment Rate

The annual interest rate for surplus cash in long-term investments. This is the benefit received by the network from funds in long-term investments.

All rates are specified as proportions, e.g., an interest rate of 10% is specified as 0.1.

Default: 0.0.

Borrowing Rate

The annual interest rate for Long-Term Borrowing. This is the cost of money borrowed to finance investment.

All rates are specified as proportions, e.g., an interest rate of 10% is specified as 0.1.

Default: 0.0.

Overdraft Rate

The annual interest rate for an overdrawn current account. This is the cost of exploiting a negotiated overdraft facility.

All rates are specified as proportions, e.g., an interest rate of 10% is specified as 0.1.

Default: 0.0.

Tax Rate

The annual tax rate on the network Pre-Tax Profit.

All rates are specified as proportions, e.g., a tax rate of 30% is specified as 0.3.

Default: 0.0.

Dividend Rate

The proportion of profit after interest and tax which is declared as dividends.

Default: Constant {0.0}. No dividends are declared.

 

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