15- A firm's preferred stock pays an annual dividend of $2, and the stock sells for $71. Flotation costs for new issuances of preferred stock are 7% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 35%? (Round your answer to 2 decimal places.)

• 1.68
• 4.48
• 3.03
• 5.18