18. Sure Tool Company is expected to pay a dividend of $2 in the upcomina vear. The risk-free rate on return is 4% and the expected return on the market portfolio is 14%. Analysts expect the price or sure Tool Company shares to be $22 a year from now. The beta of Sure Tool Company's stock is 1.25. The market's required rate of return on Sure's stock is A. 14.0% B. 17.5% C. 16.5% D. 15.25% E. None of the options 19. A company paid a dividend last year of $1.75. The expected ROE for next year is 14.5%. An appropriate required return on the stock is 10%. If the firm has a plowback ratio of 75%, the dividend in the coming year should be A. $1.80 B. $2.12. C. $1.77 D. $1.94