Builtrite has come up with the following capital structure which management believes is optimal: Debt 50% Preferred Stock 10% Common Stock 40% Preferred Stock: Builtrite could sell a $46 par value preferred with a 7% coupon for $41 a share. Issuance costs would be $3 a share. Assume a 40% tax bracket. The after-tax cost of preferred stock is: O 7.85% 10.26% O 8.47% O 7.55%