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. 6.35% 7.72% 5.02% None of them 9.33%