Fritz Industries plans to issue a $100 par perpetual preferred stock with a fixed annual dividend of 8 percent of par. It would sell for $104.40, but flotation costs would be 5 percent of the market price, making the net price $99.18 per share. What is the percentage cost of preferred stock after taking flotation costs into account?

	a.	7.46%
	b.	7.28%
	c.	7.66%
	d.	8.07%
	e.	8.77%