Bosio Inc.$\text{'}$s perpetual preferred stock sells for $$120\mathrm{.}00$ per share, and it pays an $$8\mathrm{.}50$ annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of $4\mathrm{.}00\%$ of the price paid by the investors. What is the company's cost of preferred stock for use in calculating the WACC?

A$.$

$8\mathrm{.}34\%$

B$.$

$7\mathrm{.}97\%$

C$.$

$7\mathrm{.}38\%$

D$.$

$5\mathrm{.}83\%$