[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: 47CFR65.304]

[Page 358-359]
 
                       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. 65.304  Capital structure.

    The proportion of each cost of capital component in the capital 
structure is equal to:
    Proportion in the capital structure =
    [GRAPHIC] [TIFF OMITTED] TR01JN95.002
    

[[Page 359]]


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 Sec. 
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 Sec. 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]