§  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
   § 65.304 multiplied by the composite cost of the component computed in
   accordance with § 65.301 or § 65.302, as applicable. The composite
   weighted average cost of equity will be determined in each prescription
   proceeding.

   [ 60 FR 28546 , June 1, 1995]