Question: the answer i have is correct, please just show how to get the answer along with the formula, thanks. 17. The common stock of Tommy's

the answer i have is correct, please just show how to get the answer along with the formula, thanks.

17. The common stock of Tommy's Tools sells for $27.50. The firm's beta = 1.2, the risk-free rate is 4%, and the market risk premium is 8%. Next year's dividend is expected to be $1.50. Assuming that dividend growth is expected to remain constant for Tommy's over the foreseeable future, what is the firm's anticipated dividend growth rate? A. 7.6% B. 7.8% C. 8.1% D. 9.2% E. 10.1% Answer: (C) 18. The most

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