Bosio Inc.s perpetual preferred stock sells for $75 per share. It pays an annual dividend of $8.50. If the company were to sell a new preferred issue, it would incur a flotation cost of 4% of the price paid by the investors. What is the companys cost of preferred stock for use in calculating WACC?

Bosio Inc.s perpetual preferred stock sells for $75 per share. It pays an annual dividend of $8.50. If the company were to sell a new preferred issue, it would incur a flotation cost of 4% of the price paid by the investors. What is the companys cost of preferred stock for use in calculating WACC?

		10.39%
		13.93%
		14.40%
		11.81%