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Question 6 (8.35 points) A company's perpetual preferred stock currently sells for $102.50 per share, and it pays an $8.00 annual dividend. If the company

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Question 6 (8.35 points) A company's perpetual preferred stock currently sells for $102.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock, including flotation? 9.53% 8.22% 9.28% 7.97% O 6.90%

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