A company is planning to issue $$25$ face value preferred stock to raise capital. The stock is expected to sell at $102\mathrm{.}5\%$ of its face value. The annual dividerid is $$1\mathrm{.}75.$ If the flotation cost is $8\%,$ what is the cost of preferred stock?

$7\mathrm{.}42\%$

$7\mathrm{.}61\%$

$6\mathrm{.}83\%$

$8\mathrm{.}94\%$

$6\mathrm{.}32\%$