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Target% in Capital Structure Debt 35% Preferred Stock 10% Equity 55% Tax Rate 28% Outstanding Bond Preferred Stock Info Common Stock Info (Annual Coupons) Preferred

Target% in Capital Structure Debt 35% Preferred Stock 10% Equity 55% Tax Rate 28% Outstanding Bond Preferred Stock Info Common Stock Info (Annual Coupons) Preferred Divided $3 Current Dividend $5 Time to Maturity (years) 15 Current Market Price $60 Current Price $50 Coupon Rate APR 5.00% Expected Growth in Dividends 2.84% Face Value $1,000 Current Market Price $1,240 Using the information in the table, what is the firm's cost of common stock? State your answer as a percentage to two decimal place (e.g., 5.30)

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