Reasonable Rate of Return for Telecommunications THEORETICAL FOUNDATIONS
Reasonable Rate of Return for Telecommunications THEORETICAL FOUNDATIONS

Summary/Abstract: The paper analyzes the main theoretical aspects of the reasonable rate of return, i.e. the need to determine the reasonable rate of return, the conception of “reasonable”, possible methods of the rate-of-return determination and the means used for the evaluation of return results. Special attention is given to the weighted cost of capital concept, which is very relevant to regulated businesses of the Lithuanian telecommunications sector. There is presented an overall conceptual system of the remedy in both – ex ante and ex post – senses. The article may be useful for researchers and practitioners of state regulation and for specialists of the telecommunications business.

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