Use the following information to answers $17$ can issue up to $$20,000,000$ in new bonds at par with a $7\%$ coupon rate; any subsequent amount mis added risk: A new issue of preferred stock would pay an annual dividend of $$8\mathrm{.}2$ and be priced to net the company $$47$ per share after the $$3\mathrm{.}00$ per floatation cost. The firm has $$21,000,000$ in change in retained earnings for the current period. CDE's common stock trades at $$40\mathrm{.}00$ per share and expected dividend on the common stock at $t_1$ is $2\mathrm{.}00.$ Floatation costs on a new common stock issue is $$5\mathrm{.}00$ per share. The company is growing a year.

What is the cost of preferred stock?

ut the answer as a percentage with two decimals. If the answer is $6\mathrm{.}85\%,$ enter $6\mathrm{.}85$