Greshak Corp Sold 10 000 Shares Of 150 00 Par Value Preferred Stock With A Requi

Greshak Corp. sold 10,000 shares of $150.00 par value preferred stock with a required 10.0% annual dividend at an issue price of $140.00 per share.  Assuming that flotation costs related to the preferred stock is $5.00 per share and the company’s marginal tax rate is 40%, what is Greshak’s cost of preferred stock capital (rounded)?

Select one:

A. 9.2%B. 10.0%C. 10.2%D. 10.4%9.2%E. 11.1%