Lei-Feng Inc.s $100 par value preferred stock just paid its$10 per share annual

Lei-Feng Inc.s $100 par value preferred stock just paid its$10 per share annual dividend. The preferred stock has a currentmarket price of $96 a share. The firms marginal tax rate (combinedfederal and state) is 40 percent and the firm plans to maintainits current capital structure relationship into the future. Thecomponent cost of preferred stock to Lei-Feng Inc. would beclosest to .