Maloney, Inc.'s $1,000 par value preferred stock paid its $100 per share annual dividend on April 4 of the current year. The preferred stock's current market price is $960 a share on the date of the dividend distribution. Maloney's marginal tax rate (combined federal and state) is 40%, and the firm plans to maintain its current capital structure relationship. The component cost of preferred stock to Maloney would be closest to___ Note that only 1pt is eligible for the correct answers without showing the calculation work.

A) 6%

B) 6.25%

C) 10%

D) 10.4%