Nature Food Inc. needs to estimate the cost of financing on preferred stock. The firm has preferred stock outstanding that pays a constant dividend of $3.19 per year. That preferred stock is currently selling for $97.17. However, the underwriter would charge flotation costs of $3.40 per share. What is the forms cost of preferred stock financing?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)