Using the information in the table, what is the firms cost of common stock?

State your answer as a percentage to two decimal place (e.g., 5.30)

Question 6 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 $4 Time to Maturity (years) 15 Current Market Price $60 Current Price $50 Coupon Rate APR 5.00% Expected Growth in Dividends 2.22% Face Value $1,000 Current Market Price $1,240