26 CAR § 230-105
26 CAR § 230-105. Overall capitalization rates
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(a) The overall capitalization rate in yield capitalization is a weighted average of the product of the firm’s individual costs of capital and its market value proportion in the capital structure.
(b) The overall capitalization rate in direct capitalization is a weighted average of the product of the firm’s direct capitalization rate for each type of security and its market value proportion in the capital structure.