An adequate rate of return on capital yielded by the regulated firms is a central issue related to the new cost-based approach adopted by the Brazilian Telecommunication Regulatory Agency (Anatel). In this context, careful attention must be given to the Weighted Average Cost of Capital (WACC)...

In this paper we discuss the several aspects involved in the determination of the cost of capital of the telecommunications industry in Brazil. The cost of capital determination for regulated industries is extremely important, both to regulators and firms, since through the pertinent rate of...