Sil English (en) Question 7 Continue from previous question. Not yet answered Marked out of 0.50 Flag question Company ABC is a large publicly traded firm, a market leader in producing self-driving agricultural machines. The company is looking at setting up a manufacturing plant overseas to produce a new line of self-driving tractors. This will be a four-year project. The plant and equipment will cost $ 100 million to build. The market data on ABC's securities is following: Debt: 563708 5.6 percent coupon bonds outstanding, 20 years to maturity. selling for $1080 each; the bonds have a $1,000 par value each and make semiannual payments. The YTM of the bonds is 4.96 percent. Common stock: 23899540 shares outstanding, selling for $56 per share the beta is 1. Preferred stock 1673382 shares of preferred stock outstanding promising 56 per share dividend, selling for $85 per share. Market: 7 percent expected market risk premium: 3 percent risk-free rate ABC faces 8 percent floatation costs of new common stock issues 6 percent on new preferred stock issues, and 4 percent on new debt issues, ABC's tax rate is 26 percent. Calculate the cost of preferred stock Express your answer as percent