Builtrite has preferred share outstanding with a current price of $68 with an annual dividend of $3.60. If Builtrite decides to sell new preferred stock, it expects the stock to sell at $64 with a $2 flotation cost. What is the firm's cost of preferred equity if the firm is in the 34% marginal tax bracket? 0 5.3% O 5.5% O 5.8% O 3.8%