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[i]0. 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 -

[i]0. 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 companys cost of common stock, rs?

A. 7.0%

B. 7.2%

C. 11.0%

D. 12.2%

E. 12.4%

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