STB: 2020 Railroad Cost of Capital Set at 7.89%

Written by William C. Vantuono, Editor-in-Chief

The Surface Transportation Board decided on Aug. 4, 2021 that the annual cost of capital for the railroad industry was 7.89% for 2020. This figure represents the Board’s Office of Economics estimate of the average rate of return needed to persuade investors to provide capital to the freight rail industry.

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