Question 15 (4 points) A company's perpetual preferred stock has a market value of $104.3 million and pays dividends of $5.5 million per year. The company's tax rate is 33%. If the preferred stock's par value is $100 million, what is the company's annual cost of preferred stock financing? 1) 5.53% 2) 5.41% 3) 5.07% 4) 5.18% 5) 5.27%