A company's perpetual preferred stock currently sells for $137.50 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? O 5.08% O4.72% O 5.14% O 6.92% O 6.12%

A company's perpetual preferred stock currently sells for $137.50 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? 5.08% 4.72% 5.14% 6.92% 6.12%