Diggin Tools just issued new preferred stock, which sold for $85 in the stock markets. Holders of the stock will receive an annual dividend equal to $9.35. The flotation costs associated with the new issue were 6 percent and Diggin's marginal tax rate is 30 percent. What is Diggin's cost of preferred stock, rps? (Points : 1) 11.0% 7.7% 8.2% 11.7% 10.3%