Oriole Hand Trucks has a preferred share issue outstanding that pays a dividend of $1.30 per year. The current cost of preferred equity for Oriole is 8.80 percent. Oriole issues additional preferred shares that pay exactly the same dividend and the investment banker retains 7.60 percent of the sale price.

The current price of preferred shares is 1477

(a)

What is the cost of the new preferred shares for Oriole? (Round intermediate calculations to 4 decimal places, eg, 1.2514 and final answer to 2 decimal places, e.g. 15.25%)