Kresler Autos has preferred shares outstanding that pay annual dividends of $6, and the current price of the shares is $108. What is the after-tax cost of new preferred shares for Kresler if the flotation (issuance) costs for preferred are 5 percent? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

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