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Bosio Inc.'s perpetual preferred stock sells for $75.00 per share, and it pays an $8.00 annual dividend. If the company were to sell a

Bosio Inc.'s perpetual preferred stock sells for $75.00 per share, and it pays an $8.00 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. 10.67% b. 10.26% c. 12.42% Od. 14.67% e. 11.11%

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