The common stock of Anthony Steel has a beta of 1.20. The risk-free rate is 5 percent and the market risk premium (rM - rRF) is 6 percent. What is the company's cost of common stock, rs?
A) 7.0%
B) 7.2%
C) 11.0%
D) 12.2%
E) 12.4%
Correct Answer:
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