Questions 10 and 11 are related. 10. TPP Inc., which owns and operates a chain of tattoo and piercing parlors, was founded 10 years ago. It has been profitable for the last 5 years, but it has needed all of its earnings to support growth and thus has never paid a dividend. Management has indicated it plans to pay $$0.32 dividend 2 years from today and hinted it expects the dividend to grow at a relatively rapid rate afterwards for several years. You forecast the dividend will increase at a relatively rapid rate for several years and then grow at a constant rate of 3.0% thereafter, as shown in the table below. Management's credibility with investors is high and it is believed the current price of the stock, $31.75, represents fair value - i.e. - the market price is equal to its intrinsic value, or is in equilibrium. What is the expected rate of return on the common stock