[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: 47CFR65.305]

[Page 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. 65.305  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]