Concept of the economic value added

Reference no: EM1373643

California Electric has a cost of equity capital of 16%. The company has consistently been authorized a return on equity capital below this expenses. Also, the effects of regulatory lag and attrition have further decreased the realized return to the 13% range. If the utility expects this problem to continue, determine what actions would you expect Cal Electric to take or not take as a result?

Reference no: EM1373643

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