A firm is paying an annual dividend of $7.00 for its preferred stock which is selling for $64.00. There is a selling cost of $4.00. What is the after-tax cost of preferred stock if the firm's tax rate is 38%? (Round your answer to 2 decimal places.)

Multiple Choice

• 13.12%

• 13.82%

• 11.67%

• 10.32%