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Acquiring Needed Capital for Growth
Water companies, restricted by regulation to certain rates of return and in many cases as to limits of depreciation allowances, must frequently turn to the capital market to meet the growth demands of their communities. When capital budgets are sizable, funds from internal sources – depreciation allowance, retained earnings, and sales of surplus property – are normally able to supply only a small part of the cost of new construction. Water utilities, no matter what their size, can get needed capital if they demonstrate to prospective investors that they are well managed. They should also always be aware that their securities must compete in the market place. Getting needed funds for expansion and improvement is essential to the existence of a utility, so it must do its best to remain attractive to the sources of capital.
Acquiring Needed Capital for Growth
Water companies, restricted by regulation to certain rates of return and in many cases as to limits of depreciation allowances, must frequently turn to the capital market to meet the growth demands of their communities. When capital budgets are sizable, funds from internal sources – depreciation allowance, retained earnings, and sales of surplus property – are normally able to supply only a small part of the cost of new construction. Water utilities, no matter what their size, can get needed capital if they demonstrate to prospective investors that they are well managed. They should also always be aware that their securities must compete in the market place. Getting needed funds for expansion and improvement is essential to the existence of a utility, so it must do its best to remain attractive to the sources of capital.
Acquiring Needed Capital for Growth
McKane, Leonard H. ( Autor:in )
Journal ‐ American Water Works Association ; 54 ; 638-646
01.06.1962
9 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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