(Cost of preferred stock) The preferred stock of Walter Industries Inc. currently sells for $36.46 a share and pays $2.51 in dividends annually. What is the firm's cost of capital for the preferred...

Extracted text: (Cost of preferred stock) The preferred stock of Walter Industries Inc. currently sells for $36.46 a share and pays $2.51 in dividends annually. What is the firm's cost of capital for the preferred stock? The firm's cost of capital for the preferred stock is %. (Round to two decimal places.)