Warm-Up 9-2 (similar to) Question Help o Your firm, People's Consulting Group, has been asked to consult on a potential preferred stock offering by Brave New World. This 14% preferred stock issue would be sold at its par value of $40 per share. Flotation costs would total $2.50 per share. Calculate the cost of this preferred stock. The cost of preferred stock is %. (Round to two decimal places.)