Full Description

Water utilities, especially those with low bond ratings, can fund capital improvements with a combination of debt capital and revenues. The optimum amount of new debt to be contracted at a single bond sale for a construction program extending over n years is equal to a portion (K1) of total capitalization during that interval diminished by a portion (nK1K2) of existing maximum debt service. The cash coverage factor and the number of years required for completion of a construction program are more influential than interest rates in determining the optimum amount of long-term debt to issue. Includes table, figures.

Product Details

Edition: Vol. 74 - No. 9 Published: 09/01/1982 Number of Pages: 4File Size: 1 file , 1.3 MB