A firm is paying an annual dividend of $6.00 for its preferred stock which is selling for $69.00. There is a selling cost of $3.00. What is the after-tax cost of preferred stock if the firm's tax rate is 35%? (Round your answer to 2 decimal places.)
a. 10.54%
b. 9.09%
c. 11.24%
d. 7.74%
