Question 28 2.5 pts Elsinore Corporation is calculating its WACC. Its bonds have a 6% coupon, paid semi-annually, a current maturity of 10 years, and sell for a quoted price of 106. The firm's preferred stock (par $100) pays a 10% annual dividend and currently sells for $103. Elsinore is a constant growth firm which just paid a dividend of $2.00 (Do), sells for $37.00 per share, and has a growth rate of 9%. The firm's beta is 1.6, and the firm's marginal tax rate is 20%. The return on the market is 12% and the risk free rate is 6%. What is Elsinore's cost of preferred stock (approximately)? 9.7% 10.8% 10.0% 7.8% 12.2%