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...

The cost of capital determination for regulated industries is extremely important, both to regulators and firms, since through the pertinent rate of return it becomes possible to maintain the sustainability and expansion of the public service. The attractiveness of investments to infrastructure...

The current methodology adopted by the Aneel to estimate the rate of return (cost of capital) applied in the periodic tariff revision is improved via some modifications in the following parameters: country risk, exchange rate risk and regulatory risk. We recommend the global CAPM methodology...

In this paper we advance the idea that optimal risk management under the Basel II Accord will typically require the use of a combination of different models of risk. This idea is illustrated by analyzing the best empirical models of risk for five stock indexes before, during, and after the...