Placidia Inc. just paid a dividend of $3.20 per share. Analysts forecast that the corporation's Use the following information for Problems 15 - 17. dividends will grow by 25% over the first year, 18% over the second year, and 12% over the third year. Affer the third year, analysts believe that the corporation's dividends will grow at a constant rate of 4% for the foreseeable future. The corporation's beta is 2.1 . The current risk-free rate of return is 3.7% and the retum on the market is 12.5%. 15. Based on the CAPM, what is the required rate of return on the corporation's common stock? a. 29.95% b. 22.18% c. 16.77% d. 12.50%