MC Qu. 69 A firm's preferred stock pays an annual dividend of... A firm's preferred stock pays an annual dividend of $7, and the stock sells for $86. Flotation costs for new issuances of preferred stock are 4% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 37%? (Round your answer to 2 decimal places.) 10.63 8.48 9.93 7.13