MC supplies power to homes and businesses in Ottawa. Electricity prices are regulated in Ontario...

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Finance

MC supplies power to homes and businesses in Ottawa. Electricity prices are regulated in Ontario and regulators will not allow profits to grow at extraordinary rates. The firm is in a stable growth phase based on its size and area it serves. The firms beta is 0.75 and was stable over time. T-Bond rate is 7.5%, the current EPS is $ 3, dividend payout ratio (DPR) in year 2005 is 68% and the expected growth rate in earnings and dividends is 5%, the return on the TSX/S&P Composite Index is 13%. What is the value of MC?

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