1. (a)

   1. (1) The actual weighting percentages for each approach for the first three (3) years of implementation of this part shall be as follows:

      	Year 1	Year 2	Year 3
      Cost	20%	30%	40%
      Stock and Debt	30%	20%	10%
      Income Capitalization	50%	50%	50%

   2. (2) The weighting percentages specified for Year 3 shall be used for each year after the third year of implementation of this part.
2. (b) For telephone companies in which there is available neither a market price nor appropriate surrogate to develop a reliable stock and debt approach or income capitalization approach, the cost approach alone may be used.

3. (c)

   1. (1) In instances in which the property is new, the cost approach alone may be used for the first assessment year.
   2. (2) Thereafter, either subsections (a) or (b) of this section shall apply.

Codification Notes: This section was promulgated as Section IV of the Market Valuation Rules for Telephone Companies prior to codification into the Code of Arkansas Rules.