Adams Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 1.05. What is the firm's cost of common from reinvested earnings based on the CAPM?
A. 11.30%
B. 11.64%
C. 11.99%
D. 12.35%
E. 12.72%
Answer: A
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