QUESTION $30$

Tommy Enterprises expects earnings and dividends to grow at a rate of $25\%$ for the next $4$ years, after the growth rate in earnings and dividends will fall to zero, i$.$e$.,g=0.$ The company's last dividend, $D_0,$ was $$1\mathrm{.}25,$ its beta is $1\mathrm{.}20,$ the market risk premium is $5\mathrm{.}50\%,$ and the risk$-$free rate is $3\mathrm{.}00\%.$ What is the current price of the common stock? Set your calculator to at least $4$ decimal places.

$$26\mathrm{.}77$

$$27\mathrm{.}89$

$$29\mathrm{.}05$

$$30\mathrm{.}21$

$$31\mathrm{.}15$