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36. Bosio Inc.'s perpetual preferred stock sells for $120.00 per share, and it pays an...

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36. Bosio Inc.'s perpetual preferred stock sells for $120.00 per share, and it pays an $8.50 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. 8.34% 6. 7.53% c. 7.97% d. 5.83% c. 7.38%

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