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Adams Inc. has the following data: risk-free rate = 5.0%; Return on Market Portfolio = 11.0%; and Beta=1.15. What is the firm's cost of common

Adams Inc. has the following data: risk-free rate = 5.0%; Return on Market Portfolio = 11.0%; and Beta=1.15. What is the firm's cost of common from reinvested earnings based on the CAPM?

a. 11.61%

b. 11.75%

c. 11.90%

d. 12.35%

e. 12.70%

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