1. Cost of preferred stockTaylor Systems has just issued preferred stock. The stock has a 12% annual dividend and a $ 110 par value and was sold at $108.90 per share. In addition, flotation costs of $5.50 per share were paid. Calculate the cost of the preferred stock.

The cost of the preferred stock is _______%.

2. Cost of preferred stockDetermine the cost for the following preferred stock.

Par value	Sale price	Flotation cost	Annual dividend
$50.00	$52.50	$2.50	88%

The cost of preferred stock is _______%.