Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE

14-Bosio Inc.'s perpetual preferred stock sells for $137.50 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?

A)6.18%

B)6.44%

C)6.83%

D)7.92%