Grill Works Has 6 Percent Preferred Stock Outstanding That Is

Grill Works has 6 percent preferred stock outstanding that is currently selling for $49 a share. The market rate of return is 14 percent and the tax rate is 21 percent. What is the cost of preferred stock if its stated value is $100 per share?

A) 12.77 percent
B) 12.29 percent
C) 12.67 percent
D) 12.24 percent
E) 12.54 percent