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Elk City Utility recently paid a dividend of $3.69 per share. Dividends are expected to grow at a rate of 3.00%. Elk City stock currently

Elk City Utility recently paid a dividend of $3.69 per share. Dividends are expected to grow at a rate of 3.00%. Elk City stock currently sells for $37.20 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 %

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