A Company's perpetual preferred stock sells for $75.50 per share, and pays $5.75 annual dividend. If the company were to issue a new preferred issue, a flotation cost of 7.50% would be paid to the investment bankers. What is the company's cost of issuing new preferred stock? 6.58% 13.20% 10.18% 8.23% 12.95%

A Company's perpetual preferred stock sells for $75.50 per share, and pays $5.75 annual dividend. If the company were to issue a new preferred issue, a fotation cost of 7.50% would be paid to the investment bankers. What is the company's cost of issuing new preferred stock? 6.58% 13.20% 10.18% 8.23% 12.95%