ABC Company has publicly traded $1,000 par value, 5% semiannual coupon bonds which mature in 18 years. These bonds have a current market price of $1045. The company also has preferred stock with a $70 par and 6% annual dividend. The market has priced the preferred stock at $89. ABC's common stock has a beta of 1.4. You estimate the risk-free rate to be 2% and the required return on the market to be 12%. The company's average tax rate is 30%. What is the cost of the company's common stock? 18.7% 18.0% 16.0% 17.4%