o XYZ Corporation would like to raise money to fund its capital budgeting projects by selling preferred stock. The current market price of the preferred stock is $20. However, the company will incur flotation costs of $1.50 per share. The corporation pays a dividend of $2.00 per share on the preferred stock. XYZ Corporation's marginal tax rate is 40% Calculate the cost of preferred stock for use in the corporation's calculation of its weighted average cost of capital O A. 8.3% OB. 10.8% OC. 6.5% OD. 5.0%