MCG Company decided to sell perpetual (never matures) preferred stock with an 8% yield (pays out 8% of par as dividend). If the stock had a par value of $150, and the stated flotation costs would amount to 2% of the par value (flotation cost being the amount it costs to actually sell the securitythe price received by the firm is net of sales price minus flotation cost), what is the cost of the perpetual preferred stock?

Cost of the perpetual preferred stock = ......... % (Round your answer to two decimal places.)