Duff & Phelps has decreased its recommended U.S. equity risk premium (ERP) from 5.5% to 5.0% for use as of September 5 and thereafter, until further guidance is issued. This new rate, used in conjunction with a normalized risk-free rate of 3.5% (reaffirmed), implies a “base” U.S. cost of equity capital estimate of 8.5% (5.0% + 3.5%). To read the full report, click here. D&P is the author of The 2017 Valuation Handbook - U.S. Guide to Cost of Capital, part of a series of cost of capital handbooks that includes two U.S. guides and two international guides.