Debt rate for this firm = 11% Tax rate = 33% Preferred Dividend = $6.00 Price Preferred Stock = $48.00 Common Dividends at t1 = $4.00 Price of Common Stock = $35.00 Growth rate of dividends = 3% Flotation costs = 4% of price Calculate the cost of preferred stock (expressed as a percentage with one decimal i.e. xx.x%).