Flag question: Question 1 Question 1 2 pts Bell Inc.'s perpetual preferred stock sells for $105 per share, and it pays an $9 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the price paid by investors. What is the company's cost of preferred stock?

Group of answer choices:

10%

9%

7.5%

8%