Use of a Multi-Stage Discontinued Cash Flow Model in Determining the Railroad Industry's Cost of Capital, 5896 [E9-2185]

Download as PDF 5896 Federal Register / Vol. 74, No. 20 / Monday, February 2, 2009 / Notices manufacturer contemplates making any changes the effects of which might be characterized as de minimis, it should consult the agency before preparing and submitting a petition to modify. Authority: 49 U.S.C. 33106; delegation of authority at 49 CFR 1.50. Issued on: January 27, 2009. Stephen R. Kratzke, Associate Administrator for Rulemaking. [FR Doc. E9–2107 Filed 1–30–09; 8:45 am] BILLING CODE 4910–59–P Board’s decision is available for inspection or copying at the Board’s Public Docket Room, Room 131, 395 E Street, SW., Washington, DC 20423– 0001, and is posted on the Board’s Web site, http://www.stb.dot.gov. Pursuant to 5 U.S.C. 605(b), we conclude that our action in this proceeding will not have a significant economic impact on a substantial number of small entities. This action will not significantly affect either the quality of the human environment or the conservation of energy resources. DEPARTMENT OF TRANSPORTATION Authority: 49 U.S.C. 10101(14); 49 U.S.C. 10704(a)(2)–(3). Surface Transportation Board Decided: January 23, 2009. By the Board, Chairman Nottingham, Vice Chairman Mulvey, and Commissioner Buttrey. Jeffrey Herzig, Clearance Clerk. [FR Doc. E9–2185 Filed 1–30–09; 8:45 am] [STB Ex Parte No. 664 (Sub-No. 1)] Use of a Multi-Stage Discontinued Cash Flow Model in Determining the Railroad Industry’s Cost of Capital AGENCY: Surface Transportation Board, DOT. dwashington3 on PROD1PC60 with NOTICES ACTION: BILLING CODE 4915–01–P Notice of Final Decision. SUMMARY: By a decision served on January 28, 2009, the Board modified its methodology for determining the cost of capital for the railroad industry by adopting the average of the estimates produced by its Capital Asset Pricing Model (CAPM) with the Morningstar/ Ibbotson multi-stage Discontinued Cash Flow (DCF) model to estimate the railroad industry’s cost of equity. DATES: This action is effective on January 28, 2009. FOR FURTHER INFORMATION CONTACT: Timothy J. Strafford, (202) 245–0356. [Assistance for the hearing impaired is available through the Federal Information Relay Service (FIRS) at 1–800–877–8339.] SUPPLEMENTARY INFORMATION: The Board has been thoroughly reviewing its regulatory processes for determining the railroad industry’s cost of capital. The overall cost of capital is determined through the use of two figures: The cost of debt and the cost of equity. The cost of debt is readily available and observable; however, the cost of equity is not and must be estimated using a finance model. The Board determined in a decision served on January 28, 2009, the combination of finance models that it found best depicts the cost of equity, and thereby the cost of capital. In that decision, the Board revised its methodology for determining the cost of capital for the railroad industry by adopting the average of CAPM and the Morningstar/Ibbotson multi-stage DCF model. Additional information is contained in the Board’s decision. A copy of the VerDate Nov<24>2008 15:03 Jan 30, 2009 Jkt 217001 DEPARTMENT OF THE TREASURY Internal Revenue Service Open Meeting of the Area 4 Taxpayer Advocacy Panel (Including the States of Illinois, Indiana, Kentucky, Michigan, Ohio, Tennessee, and Wisconsin) AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice of meeting. SUMMARY: An open meeting of the Area 4 Taxpayer Advocacy Panel will be conducted. The Taxpayer Advocacy Panel is soliciting public comment, ideas, and suggestions on improving customer service at the Internal Revenue Service. DATES: The meeting will be held Tuesday, March 17, 2009. FOR FURTHER INFORMATION CONTACT: Ellen Smiley at 1–888–912–1227, or (414) 231–2360. SUPPLEMENTARY INFORMATION: Notice is hereby given pursuant to Section 10(a)(2) of the Federal Advisory Committee Act, 5 U.S.C. App. (1988) that a meeting of the Area 4 Taxpayer Advocacy Panel will be held Tuesday, March 17, 2009, at 1 p.m. Central Time. For more information, please contact Ellen Smiley. Ms. Smiley may be reached at 1–888–912–1227, or (414) 231–2360, or you can submit written comments to the panel by faxing the comments to (414) 231–2363, or by mail to Taxpayer Advocacy Panel, Stop 1006MIL, 211 West Wisconsin Avenue, Milwaukee, WI 53203–2221, or you can PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 post comments to the Web site at http://www.improveirs.org. The agenda will include the following: Various IRS issues. Dated: January 27, 2009. Shawn F. Collins, Acting Director, Taxpayer Advocacy Panel. [FR Doc. E9–2101 Filed 1–30–09; 8:45 am] BILLING CODE 4830–01–P U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION Notice of Open Public Hearing AGENCY: U.S.-China Economic and Security Review Commission. ACTION: Notice of open public hearing— March 4, 2009, Washington, DC. SUMMARY: Notice is hereby given of the following hearing of the U.S.-China Economic and Security Review Commission. Name: Carolyn Bartholomew, Chairman of the U.S.-China Economic and Security Review Commission. The Commission is mandated by Congress to investigate, assess, and report to Congress annually on ‘‘the national security implications of the economic relationship between the United States and the People’s Republic of China.’’ Pursuant to this mandate, the Commission will hold a public hearing in Washington, DC on March 4, 2009 to address ‘‘China’s Military and Security Activities Abroad.’’ Background This event is the second in a series of public hearings the Commission will hold during its 2009 report cycle to collect input from leading academic, industry, and government experts on national security implications of the U.S. bilateral trade and economic relationship with China. The March 4 hearing will examine the People’s Liberation Army’s domestic and foreign activities and orientation, China’s expanding military and security influence, China’s military operations abroad, and China’s conventional arm sales. The March 4 hearing will be Cochaired by Commission Chairman Carolyn Bartholomew and Vice Chairman Larry M. Wortzel. Information on hearings, as well as transcripts of past Commission hearings, can be obtained from the USCC Web site http://www.uscc.gov. Copies of the hearing agenda will be made available on the Commission’s Web site http://www.uscc.gov as soon as available. Any interested party may file E:\FR\FM\02FEN1.SGM 02FEN1

Agencies

[Federal Register Volume 74, Number 20 (Monday, February 2, 2009)]
[Notices]
[Page 5896]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2185]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Ex Parte No. 664 (Sub-No. 1)]


Use of a Multi-Stage Discontinued Cash Flow Model in Determining 
the Railroad Industry's Cost of Capital

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice of Final Decision.

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SUMMARY: By a decision served on January 28, 2009, the Board modified 
its methodology for determining the cost of capital for the railroad 
industry by adopting the average of the estimates produced by its 
Capital Asset Pricing Model (CAPM) with the Morningstar/Ibbotson multi-
stage Discontinued Cash Flow (DCF) model to estimate the railroad 
industry's cost of equity.

DATES: This action is effective on January 28, 2009.

FOR FURTHER INFORMATION CONTACT: Timothy J. Strafford, (202) 245-0356. 
[Assistance for the hearing impaired is available through the Federal 
Information Relay Service (FIRS) at 1-800-877-8339.]

SUPPLEMENTARY INFORMATION: The Board has been thoroughly reviewing its 
regulatory processes for determining the railroad industry's cost of 
capital. The overall cost of capital is determined through the use of 
two figures: The cost of debt and the cost of equity. The cost of debt 
is readily available and observable; however, the cost of equity is not 
and must be estimated using a finance model. The Board determined in a 
decision served on January 28, 2009, the combination of finance models 
that it found best depicts the cost of equity, and thereby the cost of 
capital. In that decision, the Board revised its methodology for 
determining the cost of capital for the railroad industry by adopting 
the average of CAPM and the Morningstar/Ibbotson multi-stage DCF model.
    Additional information is contained in the Board's decision. A copy 
of the Board's decision is available for inspection or copying at the 
Board's Public Docket Room, Room 131, 395 E Street, SW., Washington, DC 
20423-0001, and is posted on the Board's Web site, http://
www.stb.dot.gov.
    Pursuant to 5 U.S.C. 605(b), we conclude that our action in this 
proceeding will not have a significant economic impact on a substantial 
number of small entities. This action will not significantly affect 
either the quality of the human environment or the conservation of 
energy resources.

    Authority: 49 U.S.C. 10101(14); 49 U.S.C. 10704(a)(2)-(3).

    Decided: January 23, 2009.

    By the Board, Chairman Nottingham, Vice Chairman Mulvey, and 
Commissioner Buttrey.
Jeffrey Herzig,
Clearance Clerk.
 [FR Doc. E9-2185 Filed 1-30-09; 8:45 am]
BILLING CODE 4915-01-P