A firm has 8% dividend preferred stock with a par value of $100 issued and outstanding. The stock is currently selling for $98.50 in the market today. If the firm is to issue new preferred shares to fund a portion of the new capital expenditures, what is the cost of new preferred share funding? Select one: a. 7.88% b. 8.12% c. 8.88% d. 8.00%