Youve collected the following information from your favorite financial website.

52-Week Price		Stock (Div)	Div Yld %	PE Ratio	Close Price	Net Chg
Hi	Lo
36.99	13.09	Arch Coal 0.44	3.0	20.0	14.53	0.25
32.90	42.81	Laclede Grp 1.66	4.0	14.2	41.60	0.31
194.90	151.71	IBM 3.00	1.6	14.7	192.37	1.91
41.86	23.44	JC Penney 0.80	1.9	45.8	41.77	0.35
29.92	22.82	Tootsie Roll 0.32	1.3	33.9	??	0.19

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

Required:

If investors feel this growth rate will continue, what is the required return for Arch Coal stock? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Required return

%