CFR /  Title 47  /  Part 65  /  Sec. 65.302 Cost of debt.

The formula for determining the cost of debt is equal to:

[GRAPHIC] [TIFF OMITTED] TR01JN95.000

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 Sec. 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 Sec. 32.9000. [60 FR 28545, June 1, 1995, as amended at 67 FR 5702, Feb. 6, 2002]