FCC 65.305 Revised as of October 1, 2007
Goto Year:2006 |
2008
Sec. 65.305 Calculation of the weighted average cost of capital.
(a) The composite weighted average cost of capital is the sum of the cost of
debt, the cost of preferred stock, and the cost of equity, each weighted by
its proportion in the capital structure of the telephone companies.
(b) Unless the Commission determines to the contrary in a prescription
proceeding, the composite weighted average cost of debt and cost of
preferred stock is the composite weight computed in accordance with Sec. 65.304
multiplied by the composite cost of the component computed in accordance
with Sec. 65.301 or Sec. 65.302, as applicable. The composite weighted average cost
of equity will be determined in each prescription proceeding.
[ 60 FR 28546 , June 1, 1995]
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