Klieman Company's perpetual preferred stock sells for $85 per share and pays a $10.7 annual dividend per share. If the company were to sell a new preferred issue, it would incur a flotation cost of 7% of the price p. 1 by investors. What is the company's cost of preferred stock? 13.54% 13.04% 14.04% 14,54% 15.04%