Kroll has increased its recommended normalized risk-free rate to 3.0% from 2.5%, effective April 7. This new rate, used in conjunction with the firm’s current recommended U.S. equity risk premium (ERP) of 5.5%, implies a “base” U.S. cost of equity capital estimate of 8.5% (5.5% + 3.0%). “Kroll regularly reviews fluctuations in global economic and financial market conditions that warrant a periodic reassessment of the ERP and the accompanying risk-free rate,” the firm says. They also provide a table summarizing these recommendations over the period from January 2008 to the present.