Klieman Company's perpetual preferred stock sells for $$92$ per share and pays a $$9\mathrm{.}7$ annual dividend per share. If the company were to sell a new preferred issue, it would incur a flotation cost of $5\mathrm{.}9\%$ of the price paid by investors. What is the company's cost of preferred stock?

$9\mathrm{.}20\%$

$9\mathrm{.}70\%$

$10\mathrm{.}70\%$

$11\mathrm{.}20\%$

$10\mathrm{.}20\%$