In my professional opinion, there's a mistake in Example 9.2 which I'd like you to correct. I agree with the example all the way until the last sentence of "Step 3." 7.44%, sure, is the ongoing cost of the preferred stock, as mentioned in Step 2. But it's not also the cost of selling the preferred stock as implied by the final sentence. If you had to pay $1.375 in order to receive $58.50, then what is the corrected cost (in % terms) of selling the preferred stock?