Lowes needs to estimate the cost of financing on preferred stock.

Lowes needs to estimate the cost of financing on preferred stock.
The firm has preferred stock outstanding that pays a constant dividend of $2.98 per year. That preferred stock is currently selling for $67.2. However, the underwriter would charge flotation costs of $3.9 per share. What is the firm’s cost of preferred stock financing?
Round the answer to two decimal places in percentage form.

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