Grill Works and More has 8 percent preferred stock outstanding that is currently selling for $57 a share. The stock's par value is $100. The market rate of return is 10 percent and the firm's tax rate is 33 percent. What is the firm's cost of preferred stock?

Multiple Choice

• 12.76 percent

• 9.26 percent

• 8.42 percent

• 11.53 percent

• 14.04 percent