Hettenhouse Companys (HC) perpetual preferred stock sells for $105.50 per share, and it pays a $8.75 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.5% of the price paid by investors. HCs marginal tax rate is 30%. What is the company's cost of preferred stock for use in calculating the WACC? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.