The Blossom Products Co$.$ currently has debt with a market value of $$250$ million outstanding. The debt consists of $9$ percent coupon

bonds $($semiannual coupon payments$)$ that have a maturity of $15$ years and are currently priced at $$1,445\mathrm{.}45$ per bond. The firm also

has an issue of $2$ million preferred shares outstanding with a market price of $$12\mathrm{.}00$ per share. The preferred shares pay an annual

dividend of $$1\mathrm{.}20.$ Blossom also has $14$ million shares of common stock outstanding with a price of $$20\mathrm{.}00$ per share. The firm is

expected to pay a $$2\mathrm{.}20$ common dividend one year from today, and that dividend is expected to increase by $6$ percent per year

forever. If Blossom is subject to a $28$ percent marginal tax rate.

what is the cost of preferred equity? round to $2$ decimal places.