Question $4$

$4$ pts

A firm's preferred stock offers a $7\%$ dividend. The current price is

$$86$ per share. The par value is $$100$ per share. What is the firm's

cost of preferred stock? Enter the answer as a whole number

with $2$ decimal places and without signs. For example, if the

answer is $$20\mathrm{.}16,$ enter $20\mathrm{.}16.$ If the answer is $\mathrm{.}1075$ or $10\mathrm{.}75\%,$

enter $10\mathrm{.}75.$