What rate of return would you allow elk city to earn

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Reference no: EM131602100

Elk City Utility recently paid a dividend of $3.77 per share. Dividends are expected to grow at a rate of 3.90%. Elk City stock currently sells for $38.20 per share. If you were on the utility regulatory commission, what rate of return would you allow Elk City to earn? (Round your answer to 2 decimal places.)

Rate of return %

Reference no: EM131602100

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