You are given the following information for Breckenridge, Inc.:

Debt: 27,000 7% coupon bonds outstanding, with 25 years to maturity and a quoted price of 107. These bonds pay interest semiannually.

Common Stock: 290,000 shares of common stock selling for $60 per share. The stock has a beta of 0.9 and will pay a dividend of $4.80 next year. The dividend is expected to grow by 4.9% per year indefinitely

Preferred Stock: 25,000 shares of 8.5% preferred stock selling at $101 per share

Market: 11.7% expected return, risk-free rate of 2.7%, and a 33% tax rate

What weight should Breckenridge use for preferred stock when calculating the cost of capital. Express the weight as a whole percentage rounded to the nearest basis point (i.e. xx.xx%)