A firm has $$3$ million market value and it sells preferred stock with a par value of $$100.$ If the coupon rate on the preferred stock is $8\%$ and the preferred stock trades at $$95,$ what is the cost of

preferred stock capital?

A$.8\mathrm{.}42\%$

B$.8\mathrm{.}84\%$

C$.9\mathrm{.}26\%$

D$.8\%$