What return on common equity should be used for determining Aquilas rate of return?
Four financial analysts offered recommendations regarding an appropriate return on equity in this case. Testifying on behalf of Aquila, Samuel C. Hadaway, a consultant from Austin, Texas who holds an economics degree for Southern Methodist University, as well as, a Masters in Business Administration and a Ph.D. from the University of Texas at Austin,[124] recommends Aquila be allowed a return on equity of 11.25%[125] Testifying on behalf of SIEUA, AG-P and FEA, Michael Gorman, a consultant from St. Louis, Missouri who holds a Masters in Business Administration with a concentration in finance from the University of Illinois at Springfield, recommends Aquila be allowed a return on equity of 10.0 %.[126] David C. Parcell, a consultant from Virginia who holds a Masters in Business Administration from Virginia Commonwealth University, testified on behalf of Staff. He recommends Aquila be allowed a return on equity between 9.0% and 10.25%, with the mid-point of his recommendation being 9.625
