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[quote]QUOTE: Originally posted by greyhounds [quote]QUOTE: Originally posted by MichaelSol [quote]QUOTE: Originally posted by greyhounds They're not earning their cost of capital.... [/quote] The composite after-tax cost-of-capital rate for railroads in 2004 was 10.1%, as calculated by the STB, based on the then-current cost-of-debt of 5.25%; a cost of common equity capital of 13.16%; and a capital structure mix comprised of 38.5% debt and 61.5% common equity. STB is currently calculating the 2005 cost of capital, but BNSF earned 10.1%. My guess for 2005 is a cost of capital of around 10.4%. BNSF is, in 2006, likely earning its cost of capital. [/quote] Yep, they might make it this year. First time since forever. Booming economy, low interest rates and good management. They just might make a real buck this year. [/quote]Keep talking like that one of those folks on that road might say something nice to you.
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