CFR /  Title 47  /  Part 65  /  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]