Plummer industries plans to issue a $100 par perpetual preferred stock with a fixed annual dividend of 12 percent of par. It would sell for $96.60, but flotation costs would be 5 percent of the market price. What is the percentage cost of preferred stock after taking flotation costs into account?

A. 13.08%

B.12.42%

C. 11.80%

D. 11.56%

E. 15.04%