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QUESTION
Reliable Electric is a regulated public utility, and it is expected to provide steady dividend growth of 5% per year for the indefinite future.
Reliable Electric is a regulated public utility, and it is expected to provide steady dividend growth of 5%
per year for the indefinite future. Its last dividend was $2 per share; the stock sold for $60 per share just
after the dividend was paid. What is the company's cost of equity?
(Do not round intermediate
calculations. Enter your answer as a percent rounded to 2 decimal places.)
