A company's perpetual preferred stock currently sells for $110.00 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 3.50% of the issue price. What is the firm's cost of preferred stock? 7.54% Oa. Ob.8.22% O. 5.24% Od 6,44%