3) [1 point] You want to estimate the cost of a firm's hybrid security. The security was issued three years ago at $50/security. The price is currently $53/security. It pays a semiannual dividend of $3.00/security. The company has the one-time option to pay a super dividend of $55/security in 5 years, which would cause the securities to expire (essentially, a buyback option). Your research indicates that the company will exercise this option with a probability of 40%. What is the annualized cost of this firm's hybrid security capital? A) 11.32% B) 11.89% C) 11.55%