FourEver Inc.'s perpetual preferred stock sells for $54.00 per share, and it pays $4.20 in 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?

A.) 7.78%

B.) 8.02%

C.) 12.86%

D.) 13.25%