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Spencer Bioengineering's preferred stock has a par value of $100 and pays a dividend of $4.50. The current price of Spencer's preferred is $75. Spencer's

Spencer Bioengineering's preferred stock has a par value of $100 and pays a dividend of $4.50. The current price of Spencer's preferred is $75. Spencer's tax rate is34%. The before tax and after tax cost of preferred equity to Spencer is

A.8.04%,6.00%.

B.6.00%, 6.00%.

C.6.00%,3.96%.

D.4.5%,2.97%.

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