Given: Debt rate for this firm Tax rate Preferred Dividend Price Preferred Stock Common Dividends at t1 Price of Common Stock Growth rate of dividends Flotation costs = 8% = 22% = $5.00 = $46.00 = $3.00 = $31.00 = 3% = 5% of price Calculate the cost of preferred stock (expressed as a percentage with one decimal i.e. xx x%)