A company's perpetual preferred stock currently sells for $105.00 per share, and it pays a $10.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock? a. 10.03% b. 14.52% c. 9.52% d. 11.05% e. 9.07%