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Adams Inc. is a company that is exactly as risky as an average firm in the market. The current market data is as follows: Risk

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Adams Inc. is a company that is exactly as risky as an average firm in the market. The current market data is as follows: Risk Free Rate =5.00%; Market Risk Premium =6.50%. The company is also expected to pay $1.25 of dividends next year, while the current stock price is $21. What is the firm's cost of common stock? 11.50% 11.64% 11.99% 12.35% 12.72%

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