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31.The common stock of Anthony Steel has a beta of 1.20.The risk-free rate is 5 percent and the market risk premium (r M - r

31.The common stock of Anthony Steel has a beta of 1.20.The risk-free rate is 5 percent and the market risk premium (r_M - r_RF) is 5.5 percent. What is the company's cost of common stock, r_s?

a.7.0%

b.7.2%

c.11.6%

d.12.2%

e.12.4%

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