Krown Industries is a Canadian shoe company. The company currently has 5 million common shares trading at $25 each, and bonds with a total face value of $100 million. The bonds have a maturity of 20 years and pay semiannual coupons at 5.5%. They are currently trading at 86% of par. Krown also has 0.1 million shares of 3.5% preferred stock with face value of $100. The market beta of the company is 1.57, T-bills are currently yielding 4%, and average return on market index is 7%. The preferred stock sells for $45 a share. Krown's tax rate is 30%. The cost of prefered shares is?: Fill the blank in percentage points rounding to two decimals, for example : if the answer is 11.516248 include 11.52 (Do not include the % sign)