An analyst gathered the following information regarding Star Traders Inc.: Current market share price = $42 Market price of preferred stock = $52 Common stock (issued 300,000 common shares) = $3,000,000 Preferred stock (issued 40,000 preferred shares) = $800,000 The company pays dividends of $3.40 per share and $5.60 per share on its common and preferred stock respectively. What is the company's cost of preferred stock? A. 11.63% B. 9.48% C. 10.77% D. 9.23%