Sidman Products plans to issue preferred stock with a perpetual annual dividend of $11. Sidman can issue new preferred stock at a price of $108.50 per share, but flotation costs will be 5% of the market price. What is the cost of Sidmans preferred Stock? (Tip: you should use the net price for this calculation, just like you would do for common stocks with a floatation cost.)

Group of answer choices

10.67%

9.86%

15.14%

10.14%