Your employer pays a $$1\mathrm{.}60$ dividend on its preferred shares. If the price of its preferred shares are $$27$ and floatation costs would be $0\mathrm{.}60$ per share, what is the required rate of return on the firm$$s preferred shares?

a$.$

$5\mathrm{.}85\%$

b$.$

$5\mathrm{.}93\%$

c$.$

$6\mathrm{.}20\%$

d$.$

$6\mathrm{.}06\%$