Melba's Toast has a preferred shayre issue outstanding with a current price of $$22.$ The firm is expected to pay a dividend of $$1\mathrm{.}55$ per share a year from today. What is the firm's cost of preferred equity?

$8\mathrm{.}00\%$

$7\mathrm{.}045\%$

$11\mathrm{.}70\%$

$9\mathrm{.}25\%$