Bosio Inc.'s perpetual preferred stock sells for $95.00 per share, and it pays a $9.00 annual dividend.
If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price
paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?

a . 9.87%
b . 10.88%
c . 9.47%
d . 13.47%
e . 9.11%