(Computing the cost of preferred stock) In the spring of 2017 the Marrion Metal Shaping Company was planning on issuing preferred stock to help finance a major plant expansion. Your firm is planning to issue preferred stock. The stock is expected to sell for $98.32 a share and will have a $100 par value on which the firm will pay a 10.9 percent dividend. What is the cost of capital to the firm for the preferred stock? The firm's cost of capital for the preferred stock is %. (Round to two decimal places.)