8. Perpetual preferred stock from Franklin Inc. sells for $96.50 per share, and it pays an $7.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? a. 8.18% b. 9.08% 7.5 c. 9.44% d. 9.82% e. 10.22% tong (196.5) 11-05)) = 91.6750 .0818