A company has preferred stock with a current market price of $$18$ per share. The preferred stock pays an annual dividend of $4\%$ based on a par value of $$100.$ Flotation costs associated with the sale of preferred stock equal $$1\mathrm{.}50$ per share. The company's marginal tax rate is $40\%.$ Therefore, the cost of preferred stock is

A$)28\mathrm{.}80\%.$

B$)24\mathrm{.}24\%.$

C$)22\mathrm{.}22\%.$

D$)14\mathrm{.}55\%.$