47 CFR § 65.303 - Cost of preferred stock.

---
identifier: "/us/cfr/t47/s65.303"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "47 CFR § 65.303 - Cost of preferred stock."
title_number: 47
title_name: "Telecommunication"
section_number: "65.303"
section_name: "Cost of preferred stock."
chapter_name: "FEDERAL COMMUNICATIONS COMMISSION"
subchapter_number: "B"
subchapter_name: "COMMON CARRIER SERVICES"
part_number: "65"
part_name: "INTERSTATE RATE OF RETURN PRESCRIPTION, PROCEDURES, AND METHODOLOGIES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220, 254, 303(r), 403, and 1302 unless otherwise noted."
cfr_part: "65"
---


# 65.303 Cost of preferred stock.

The formula for determining the cost of preferred stock is:

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 § 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 § 32.9000.

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