Suppose a firm has a preferred stock that pays a $10 annual dividend (no growth expected in this payment) and currently sells for $90.00 per share. If it plans to issue more preferred shares paying the same dividend but also needs to incur a floatation cost of five percent, the firm's cost of preferred stock would be
A 7.81% B 11.7% C 11.11% D 9.10% E 9.56%