Sec.  65.302   Cost of debt.

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

   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]