The Crane Products Co$.$ currently has debt with a market value of $$250$ million outstanding. The debt consists of $9$ percent coupon bonds $($semiannual coupon payments$)$ that have a maturity of $15$ years and are currently priced at $$1,418\mathrm{.}61$ per bond. The firm also has an issue of $2$ million preferred shares outstanding with a market price of $$10\mathrm{.}00$ per share. The preferred shares pay an annual dividend of $$1\mathrm{.}20.$ Crane 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 $5$ percent per year forever. If Crane is subject to a $28$ percent marginal tax rate,

Calculate the cost of preferred equity. $($Round intermediate calculations to $4$ decimal places, e$.$g$.1\mathrm{.}2514$ and final answer to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.)$

Cost of preferred equity $\%$