User:VioletteRosario

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. By creating, expanding, and improving upon public utilities, a governmental body may attempt to improve its image or attract investment. A utility's capital structure may have a significant debt component, which exposes the company to interest rate risk. Rate of return regulation: regulators let the firms set and charge any price, as long as the rate of return on invested capital does not exceed a certain rate. For example, is binance allowed in uk if the rate of return is set at five percent, then the firm can charge a higher price simply by investing more in capital than what it is actually needed (i.e., 5% of $10 million is greater than 5% of $6 million). Consequently, the industry is capital intensive, requiring regular access to the capital markets for external financing. Service area: regulators need to balance the economic needs of the companies and bar c finance lake jackson txu the social equity needed to guarantee to everyone the access to primary services.