IBM company's Stock and Bond information is provided below:

• Bond Time to Maturity: 20-years; Annual Coupon Rate: 7.00%; PAR Value: $1,000; Currently trading at: $1,275.54
• Preferred Stock Preferred Stock Price: $64.00; Preferred Annual Dividend: $3.50
• Common Stock (Method 1) Equity Beta: 1.2; Risk-free Rate: 3.00%; Market Risk Premium: 6.00%
• Common Stock (Method 2) Long-run earnings growth: 7.00%; Expected Dividend (in one year): $2.10; Current Stock Price: $57.66

How much is IBMs cost of preferred stock?

Enter your answer in the following format: 0.1234;

Hint: Answer is between 0.0503 and 0.0591