Plummer industries plans to issue a $100 par perpetual preferred stock with a fixed annual dividend of 12 percent of par. It would sell for $96.60, but flotation costs would be 5 percent of the market price. What is the percentage cost of preferred stock after taking flotation costs into account?
A. 13.08%
B.12.42%
C. 11.80%
D. 11.56%
E. 15.04%