A stock has a beta of 0.75, the expected return on the market is 12 percent, and the risk-free rate is 3 percent. What must the expected return on this stock be?

Suppose Tom, Ltd. just issued a dividend of $2.00 per share on its common stock. The companys dividends have been growing at a rate of 7%. If the stock currently sells for $50.00, what is your best estimate of the companys cost of equity?