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Table of contents (7 chapters)
Keywords
About this book
Austrian Controller Award 2005
This book develops a comprehensive concept of regulatory risk integrating existing theoretical and empirical research. The focus is on explaining how the design of the regulatory system influences the risk of a rate-regulated firm, as well as on elaborating appropriate methods for the determination of the regulatory rate base and the allowed rate of return. Regarding the regulatory rate base, the question of whether market value of capital or book value of assets should be employed and the choice of the depreciation scheme are at the center of the discussion. Specific methodical issues concerning cost of capital assessment for rate-regulated firms are analyzed, i.e. the circularity of rate regulation, the sharing of risks between capital owners and rate payers, the length of the regulatory review period, the regulation of the capital structure as well as the conversion of a post-tax to pre-tax weighted average cost of capital.
Authors and Affiliations
Bibliographic Information
Book Title: Regulatory Risk and the Cost of Capital
Book Subtitle: Determinants and Implications for Rate Regulation
Authors: Burkhard Pedell
DOI: https://doi.org/10.1007/3-540-30802-4
Publisher: Springer Berlin, Heidelberg
eBook Packages: Business and Economics, Business and Management (R0)
Copyright Information: Springer-Verlag Berlin Heidelberg 2006
Hardcover ISBN: 978-3-540-30801-0Published: 13 February 2006
Softcover ISBN: 978-3-642-06806-5Published: 14 October 2010
eBook ISBN: 978-3-540-30802-7Published: 20 April 2006
Edition Number: 1
Number of Pages: XI, 221
Topics: Accounting/Auditing, Finance, general, Industrial Organization