You are interested in buying 100 shares of Diversified Company’s $60 par value preferred stock. The stock has a dividend rate of 8.5%. If your required return is 11 percent, how much would you be willing to pay to acquire the 100 shares? 

a) $7,727 

b) $129,412 

c) $6,000 

d) $4,636 

e) $7,765