3. The cost of preferred stock Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity. Consider the case of Turnbull Enterprises: At the present time, Turnbull Enterprises does not have any preferred stock outstanding but is looking to include preforred stock in its capital structure in the future. Turnbul has found some institutional investors that are willing to purchase its preferred stock issue provided that ie pays a perpetual dividend of $12 per share. If the investors pay $137.66 per share for their investment, then Tumbull's cost of preferred stosk (rounded to four decimat places) will be