Yellow Beak Inc. (YBI) has preferred shares outstanding with a current share price of $110. The shares were initially issued at $100 each. The shares pay an annual dividend of $7.50 per preferred share. YBI pays income taxes at 15%. What is the after-tax cost of the preferred shares? A. 5.80% B. 6.82% C. 7.50% D. 6.38%