Youve collected the following information from your favorite financial website.52-Week PriceStock (Div)Div

Yld %PE

RatioClose

PriceNet

ChgHiLo36.9913.09Arch Coal 0.644.120.015.430.2532.9042.81Laclede Grp 1.664.014.241.600.31194.90151.71IBM 3.001.614.7192.371.9141.8623.44JC Penney0.801.945.841.770.3529.9222.82Tootsie Roll0.321.333.9??0.19According to your research, the growth rate in dividends for Arch Coal for the previous 10 years has been 5.3 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).)