Pure Michigan also issued the following Preferred Stock: (2.5 Points)

Coupon rate 4.0% per annum, and paid annually

Par Value: $100

Each Preferred was sold at $101 but had to pay 2.0% flotation expenses.

A total of 7,426 Preferred Stocks were sold.

What is the Cost of Preferred Stock? [Make sure you enter annualized cost]