10.12

12. Problem 10.14 (Cost of Preferred Stock including Flotation) ook Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $87.00, but flotation costs will be 5% of the market price, so the net price will be $82.65 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places. %