Golfing Inc. is considering issuing preferred stock to raise capital for a new golf ball logo machine. The preferred stock would have a par value of $75, & a 5.5% dividend. What is the after tax cost of preferred stock for my company if the flotation costs I will be charged are 5.5% of the par value?

a.5.5%

b.5.27%

c.7.73%

d.5.82%