Very nice drive to Sarajevo since I last logged on and I'll be here for a couple of weeks. Greg wrote and asked Hello Greg, Hi, I'm a Master's student from a University in the UK. I'm currently doing my Financial Reporting coursework regarding the UK retail market. I'm in the midst of finding the risk free rate (Rf) and the Rm for computing the cost of capital rate for computing my NPV. So can you be so kind to give me some hints of how and where can I find these rates from especially for Marks & Spencer Plc and J Sainsbury? Thanks in advance. Greg Here's my reply: I’m not sure I’ll be able to help you that much as you have moved into a specialist area and since I don’t work much in and around finance, I can only do my best. Start with something like this http://www.rail-reg.gov.uk/docs/77/costcap.htm it gives you the standard view of the risk free rate being the rate on index-linked UK Government bonds … this page concerns the cost of capital for railtrack and it should be of use to you as it then goes on to talk about debt premia and the cost of equity. Here’s a similar page from Oftel http://www.oftel.gov.uk/publications/1995_98/fair_trading/ftmobile/annex.htm which gives a few more, although it’s not as comprehensive as the previous page. That page links to http://www.oftel.gov.uk/publications/1995_98/fair_trading/ftmobile/contents.htm which MIGHT be of additional help. Here’s a pdf file that I’ve seen a few times, http://www.postcomm.gov.uk/documents/competition/OXERA_letter.pdf, and that you might find useful: aimed at the postal service this time. Another pdf file from the competition commission http://www.competition-commission.org.uk/fulltext/306a3.4.pdf that relates to BAA and gives the usual blurb on cost of capital and beta. It’s part of a very large document that you might get your hands on if you play around with the URL or go to the commission’s site and do a search there. Yet another pdf, this time on the London Underground http://www.london.gov.uk/approot/news/ind_soc_report/Appendix_VII_financial_modelling.pdf at least you are getting real live examples! A lot of sensitivity analysis here, too, by the look of it. Try this pdf, too, http://www.caa.co.uk/erg/ergdocs/costofcapital.pdf, although my web link fell apart at this point! Anyway, I hope this is of some use and I’m sorry I couldn’t get directly at M&S and Sainsbury for you but I think these links will get you at least part of the way. Let me know if I can help further and tell me how you get on with your study: I will be interested. Best wishes DW