Wayne Inc.'s perpetual preferred stock sells for $117.50 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? 7.23% 5.65% 5.95% 7.54% 7.16%