Calculate the after-tax cost of preferred stock for Bozeman-Western Airlines Inc. which is planning to sell $14 million of $5.50 cumulative preferred stock to the public at a price of $60 a share. Issuance costs are estimated to be $8 a share. The company has a marginal tax rate of 40 percent. Round your answer to two decimal places. 10.12% would be entered as 10.12

Hint: the $5.50 is the dividend.