Klieman Company's perpetual preferred stock sells for $90 per share and pays a $7.50 annual dividend per share. If the company were to sell a new...

Klieman Company's perpetual preferred stock sells for $90 per share and pays a $7.50 annual dividend per share. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the price paid by investors. What is the company's cost of preferred stock?