11.3

Cost of preferred stock.Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $94and a dividend rate of 9.6%. The stock is selling for $62.68 in the market. Kyle hires Wilson Investment Bankers to sell the preferred stock. Wilson charges a fee of 2% on the sale of preferred stock. What is the cost of preferred stock for Kyle using the investmentbanker?

What is the cost of preferred stock for Kyle using the investment banker?

____% (Round to two decimal places)