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A company's perpetual preferred stock currently sells for P115.00 per share, and it pays an P8.00 annual dividend. If the company were to sell a

A company's perpetual preferred stock currently sells for P115.00 per share, and it pays an P8.00 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.7.32%

B.5.93%

C.6.08%

D.6.00%

E.7.18%

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