A company's perpetual preferred stock currently sells for $117.50 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 5.00% of the issue price. What is the firm's cost of preferred stock? a O 7.53% 5.38% 7.38% O 7.60% O 7.17%