Klieman Company's perpetual preferred stock sells for $93 per share and pays a $6.5 annual dividend per share. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.9% of the price paid by investors. What is the company's cost of preferred stock? O 7.45% 7.55% 7.25% 7.15% 7.35% Question 8 1 pts Reingaart Systems is expected to pay a $3.9 dividend at year end (D1 = $3.9), the dividend is expected to grow at a constant rate of 6.1% a year, and the common stock currently sells for $52 a share. The before-tax cost of debt is 8.4%, and the tax rate is 29%. The target capital structure consists of 52% debt and 48% common equity. What is the company's WACC if all equity is from retained earnings? 9.73% 9.63% 9.33% 9.43% 9.53%