Suppose a firm has a preferred stock that pays a $12 annual dividend (no growth expected in this payment) and currently sells for $100.00 per share. If it plans to issue more preferred shares paying the same dividend but also needs to incur a floatation cost of five percent, the firm's cost of preferred stock would be:

		11.70%
		12.19%
		12.63%
		13.03%
		13.40%