Bosio Inc.$\text{'}$s perpetual preferred stock sells for $$102\mathrm{.}50$ per share, and it pays an $$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 investors. What is the company's cost of preferred stock for use in calculating the WACC?

a$)7\mathrm{.}26\%$

b$)7\mathrm{.}17\%$

c$)9\mathrm{.}33\%$

d$)8\mathrm{.}64\%$

e$)8\mathrm{.}72\%$