Manitou Inc Has Preferred Stock Paying an Annual Dividend of $2.25,and

Multiple Choice

Manitou Inc has preferred stock paying an annual dividend of $2.25,and common stock paying an annual dividend of $0.85.If the current preferred stock price is $18.75,what is Manitou's cost of preferred stock capital?

A) 11%
B) 12%
C) 4.5%
D) 10%
E) 13%