Klieman Company's perpetual preferred stock sells for $85 Der share and pays a \$6.2 annual dividend per share. If the company were to sell a new preferted a ssuie. it would incur a flotation cost of 3.6% of the price paid by investors, What is the company's cost of preferred stock? 8.07% 7.57% 6.57% 6.07% 7.07% Assume that you are a consultant to Thornton Inc, and you have been prowided with the following data: rRF =4.9%; RPM =5%; and b=0.8. What is the cost Of equity from retained earnings based on the CAPM approach? 9.4% 8.5% 10.3% 9.9% 8.9%