14-11. (Computing the cost of preferred stock) The preferred stock of Walter Industries Inc. currently sells for $36 a share and pays a 10 percent dividend on the $25 par value of the shares annually. What is the firm's cost of capital for the preferred stock? - 1 - - 1 - > fx B D E G H 1 P14-11M (change the current market price to $28 per share and the dividend percentage to 6.75%) Cost of Preferred Stock Market Price Par Value Dividend Percent Dividend Amount Cost of Preferred Stock 2 3 15 17 11 24