problem: X Corporation is trying to determine the appropriate cost of preferred stock to use in determining the firm's cost of capital.  This firm's preferred stock is currently selling for 36 dollar, and pays a perpetual annual dividend of 2.60 dollar per share.  Underpreparers of a new issue of preferred stock would charge USD 6 per share in flotation costs. The firm's tax rate 30 percent. find out the cost of new preferred stock XYZ.