TITLE 47 - TELECOMMUNICATION

CHAPTER I - FEDERAL COMMUNICATIONS COMMISSION

SUBCHAPTER B - COMMON CARRIER SERVICES

PART 65 - INTERSTATE RATE OF RETURN PRESCRIPTION PROCEDURES AND METHODOLOGIES

subpart c - EXCHANGE CARRIERS

65.302 - Cost of debt.

The formula for determining the cost of debt is equal to: (image) Where: Total Annual Interest Expense is the total interest expense 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 32.9000.

Average Outstanding Debt is the average of the total debt 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 32.9000.

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