Dixon Corp’s preferred stock does not mature (it is a “perpetual preferred”). Each share of preferred stock pays a fixed dividend of $5.15 per year, and is currently selling for $62. Estimate Dixon’s...

Dixon Corp’s preferred stock does not mature (it is a “perpetual preferred”).  Each share of preferred stock pays a fixed dividend of $5.15 per year, and is currently selling for $62.  Estimate Dixon’s marginal cost of preferred equity.  Dixon faces a marginal tax rate of 30%.