tion Debt 59,000 bonds with a 5.0% coupon rate, payable annually, 15 years to maturity, selling at $1,050 per bond. Common Stock Preferred Stock 554,000 shares of common stock outstanding. The stock sells for a price of $76 per share and has a beta of 1.20. 215,000 preferred shares outstanding, currently trading at $70.00 per share; with an annual dividend payment of $5.20, Market The market risk premium is 13% and the risk free rate is 4% Tax Rate 26% Time left What is the cost of preferred stock (Rp)? (Answer as a percentage and round to 2 decimals) O a. 4.07 % O b. 4.84% Oc. 11.18% d. 9.28 % Oe. 7.43 %