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 $2.47 per year. That preferred stock is currently selling for $99.82. However, the underwriter would charge flotation costs of $3.68 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)