AAA company is a contemplating a brand new project. To finance the new project, AAA Manufacturing can issue a $25-$year, $8\mathrm{.}4\%$ annual payment bond at par. Its investment banker also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the $35\%$ tax bracket $($tax rate $=35\%).$ The corporate investors require an after$-$tax return on the preferred that exceeds their after$-$tax return on the bonds by $1\mathrm{.}0\%,$ which would represent an after$-$tax risk premium. What dividend rate must be set on the preferred in order to issue it at par? Assume that $55\%$ of preferred stock dividends received by corporate investors are tax deductible. $($Hint: The after$-$tax preferred stock's cost of capital for a corporate investor is the weighted average of taxed dividend and the non$-$taxed dividend. The dividend rate you're looking for is the pre$-$tax rate.$)$