Dominion Tool Company Is Expected to Pay a Dividend of $2

Dominion Tool Company is expected to pay a dividend of $2 in the upcoming year.The risk-free rate of return is 4% and the expected return on the market portfolio is 14%.Analysts expect the price of Dominion Tool Company shares to be $22 a year from now.The beta of Dominion Tool Company's stock is 1.25.The market's required rate of return on Dominion's stock is ____.

A) 14.0%
B) 17.5%
C) 16.5%
D) 15.25%
E) none of these

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