A company's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend.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) 7.81%
B) 8.22%
C) 8.65%
D) 9.10%
E) 9.56%

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The Answer of A company's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend.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) 7.81%
B) 8.22%
C) 8.65%
D) 9.10%
E) 9.56%

A Company's Perpetual Preferred Stock Currently Sells for $92