Capital Market-Based Calculation of the Cost of Equity -- Methods of Price Regulation -- Empirical Secondary Data … important to consider a possible change in the regulation regime when the future-oriented costs of equity - both in terms of … price regulation and for conducting capital market-oriented business valuations - are to be determined. Based on the …

We analyze the treatment and impact of idiosyncratic or firm-specific risk in regulation. Regulatory authorities … regulation. In contrast, it is common to apply only a single benchmark, the weighted average cost of capital (WACC), uniformly to ….0 percentage points depending on the size of the firm (in the range of 3% to 40% of total cost of capital). Regulation of …