St. Joseph Corporation strives to maintain a capital structure that includes 32% debt and 12% preferred stock. If the pre-tax cost of debt (kd) is 5.2% annually, the cost of common equity (ke) is 8.9% annually, the companys marginal income tax rate is 24%, and the weighted average cost of capital (kA or WACC) is 7.0646% annually, what is the companys annual percentage cost of preferred stock (kp) financing?

A. 0.82%

B. 8.95%

C. 16.77%

D. 3.47%

E. 6.80%