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company's perpetual preferred stock currently sells for $77.50 per share, and it pays a $9.50 annual dividend. If the company were to sell a new

company's perpetual preferred stock currently sells for $77.50 per share, and it pays a $9.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock? a. 12.26% b. 14.67% c. 17.26% d. 11.67% e. 12.90%

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