Calculating the Revenue Requirement in Electricity
Calculating the Revenue Requirement in Electricity
Calculating the Revenue Requirement in Electricity
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Rate of ReturnInvestment Cost Rate CostDebt $60 8% $4.80Equity $40 10% $4.00$100 $8.80Weighted Cost of Capital$8.80/ $100 = 8.8%Rate of Return = 8.8%7