A company's perpetual preferred stock has a market value of $43.2 million and pays dividends of $2 million per year. The company's tax rate is 40%. If the preferred stock's par value is $40 million, what is the company's annual cost of preferred stock financing? 1) 4.51% 2) 4.37% 3) 4.63% 4) 4.71% 5) 4 42%