§  65.304   Capital structure.

   The proportion of each cost of capital component in the capital
   structure is equal to:

   Proportion in the capital structure =
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   Where:

   "Book Value of particular component" is the total of the book values of
   that component for all local exchange carriers with annual revenues
   equal to or above the indexed revenue threshold as defined in § 32.9000.

   "Book Value of Debt + Book Value of Preferred Stock + Book Value of
   Equity" is the total of the book values of all the components for all
   local exchange carriers with annual revenues equal to or above the
   indexed revenue threshold as defined in § 32.9000.

   The total of all proportions shall equal 1.00.

   [ 60 FR 28545 , June 1, 1995, as amended at  67 FR 5702 , Feb. 6, 2002]