Hettenhouse Company's perpetual preferred stock sells for $103.00 per share, and it pays a $7.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? 7.28% OA. 7.66% OB. 7.50% OC. 8.23% OD. Schadler Systems is expected to pay a $2.00 dividend at year end (D1), the dividend is expected to grow at a constant rate of 6.50% a year, and the common stock currently sells for $59.00 a share. The before-tax cost of debt is 7.50%, and the tax rate is 48%. The target capital structure consists of 36% debt and 64% common equity. What is the company's WACC if all equity is from retained earnings? 8.23% OA. B. 9.03% 4.70% Oc. 7.73% OD