Thomas's Inc. issued the 6% preferred stock at a price of $105 last year, this preferred stock is currently priced at $102.97. If Michaels wishes to sell some new preferred stock at par, what rate should they assign to the new shares? The stock has a notional face value of $100.

(Note: assume that the required rate of return on the new preferred stock will be the same as that on the existing preferred stock. Retain at least 4 decimals in your calculation.)

Select one:

5.83%

5.71%

6.00%

0.06%

6.12%