A company's perpetual preferred stock currently sells for $102.50 per share, and it pays 8% annual dividend with a $100 par. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock? a. 8.22%
b. 9.28%
c. 6.90%
d. 9.53%
e. 7.97%.
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