Overland's preferred stock was issued 3 years ago to yield 10% of its par value of $30. The stock is selling in the market today for $50. Assuming that Overland pays 15% in flotation costs on new security issues, calculate the cost of preferred stock financing.

	a.	9.2%
	b.	6.3%
	c.	8.5%
	d.	7.1%