"The corporate tax rate is at 40%. The information on debt, preferred stock and common stock for AbbyToy Ltd. are as follows. Debt: The company can issue bonds at a yield to maturity of 5%. Preferred Stock: The company can sell 5.6% preferred stock at its $100 per share par-value. Flotation costs are $4 per share. Common Stock: Price per share is currently $65. Dividends are projected at $3 per share next year with a dividend growth rate of 2%. Calculate the cost of preferred stock." 5.83% C 5.60% C4.00% C 4.17% (Ctrl)