[Code of Federal Regulations] [Title 47, Volume 3] [Revised as of October 1, 2005] From the U.S. Government Printing Office via GPO Access [CITE: 47CFR65.303] [Page 358] TITLE 47--TELECOMMUNICATION CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED) PART 65_INTERSTATE RATE OF RETURN PRESCRIPTION PROCEDURES AND METHODOLOGIES --Table of Contents Subpart C_Exchange Carriers Sec. 65.303 Cost of preferred stock. The formula for determining the cost of preferred stock is: [GRAPHIC] [TIFF OMITTED] TR01JN95.001 Where: ``Total Annual Preferred Dividends'' is the total dividends on preferred stock for the most recent two years for all local exchange carriers with annual revenues equal to or above the indexed revenue threshold as defined in Sec. 32.9000. ``Proceeds from the Issuance of Preferred Stock'' is the average of the total net proceeds from the issuance of preferred stock for the most recent two years for all local exchange carriers with annual revenues equal to or above the indexed revenue threshold as defined in Sec. 32.9000. [60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]