Answer:
11.24%
Explanation:
Calculation for the cost of the preferred stock, including flotation
Using this formula
Cost of preferred stock = Annual dividend/Current Market price
Where,
Annual dividend =$11.00
Current Market price=$97.83
Let plug in the formula
Cost of preferred stock = $11.00/$97.83
Cost of preferred stock = 11.24%
Therefore the cost of the preferred stock, including flotation will be 11.24%
