The Shoe Box Pays an Annual Dividend of $3

The Shoe Box pays an annual dividend of $3.80 on its preferred stock.What is the cost of preferred if the stock currently sells for $42.70 a share and the tax rate is 21 percent?

A) 7.94 percent
B) 11.87 percent
C) 6.68 percent
D) 9.39 percent
E) 8.90 percent