Problem 11-13 Cost of preferred stock (LO11-3] Medco Corporation can sell preferred stock for $116 with an estimated flotation cost of $6. It is anticipated the preferred stock will pay $5 per share in dividends. a. Compute the cost of preferred stock for Medco Corp. (Input your answer as a percent rounded to 2 decimal places.) Cost of preferred stock b. Do we need to make a tax adjustment for the issuing firm? Yes No