A company's perpetual preferred stock currently sells for $122.50 per share, and it pays an 58.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 10.00% of the issue price. What is the fim's cost of preferred stock? a. 5.98% b. 7.01% c. 6.87% d. 7.26% e. 6.60%