Hettenhouse Company's perpetual preferred stock sells for $$107\mathrm{.}00$ per share, and it pays a $$12\mathrm{.}00$ annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of $7\mathrm{.}00\%$ of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?

a$.12\mathrm{.}06\%$

b$.11\mathrm{.}21\%$

C$.12\mathrm{.}95\%$

d$.12\mathrm{.}00\%$