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You've collected the following information 52 week price Hi 78.2 Lo 10.52 Stock Palm Coal 0.44 Div Yld percent 3.0 PE Yield 6 Close price

You've collected the following information

52 week price Hi 78.2 Lo 10.52 Stock Palm Coal 0.44 Div Yld percent 3.0 PE Yield 6 Close price 14.70 Net change -0.24

According to your research, the growth rate in dividends for Palm Coal for the previous 10 years has been 3.5 percent.

If investors feel this growth rate will continue, what is the required return for Palm Coal stock?

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