Gemini Corporation is considering issuing preferred stock. The preferred stock would have a par value of $70 and a preferred dividend of 4.2 percent of par. In order to issue the stock, Gemini Company would have to pay flotation costs of 5 percent of par value. Given this information, Gemini Companys cost of preferred stock would be:

3.2%

4.8%

4.4%

5.2%

4.1%