A company has preferred stock that can be sold for $28 per share. The preferred stock pays an annual dividend of 5% based on a par value of $100. Flotation costs associated with the sale of preferred stock equal $1.50 per share. The company's marginal tax rate is 35%. Therefore, the cost of the preferred stock is: A. 18.87% B. 17.86% C. 11.61% D. 12.26% Please give all work on how to arrive at your answer so I can do this on future questions. Please be as explanatory as possible.