Stout Inc.'s perpetual preferred stock sells for $65.00 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. 10.39%   b. 13.62%   c. 14.40%   d. 14.28%   e. 11.81%

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