Donati Company's preferred stock sells for $86.00 per share, and it pays an $9.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 3.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?

		12.29%
		12.05%
		11.68%
		11.39%
		11.87%