XYZ Corporation is trying to determine the appropriate cost of preferred stock to use in determining the firm's cost of capital. This firm's preferred stock is currently selling for $25.89 and pays a perpetual annual dividend of $2.00 per share. The firm's tax rate is 35%. Compute the cost of preferred stock for XYZ.

A) None of them

B) 9.33%

C)6.35%

D) 5.02%

E) 7.72%