What is the Cost of Preferred Stock for Foggy Futures Weather Forecasters? The firm is in the $40\%$ tax bracket. The optimal capital structure is listed below:

The firm can sell preferred stock with a dividend that is $9\%$ of the current price of $$115.$ The cost of issuing and selling the stock is expected to be $$10$ per share.

$($NB: Use the intrinsic $($internal$)$ values $($rates$,$ cost$)$ of each component in the capital structure.$)$