San Antonio Edison has a preferred stock issue outstanding on which it pays an annual dividend of $4.25 per share. On August 24, 2011, the stock price was $58.50 per share. If the firm were to sell a new issue of preferred stock today with the same characteristics as its outstanding issue, it would incur flotation costs of $1.375 per share. Based on the most recent closing price for the preferred stock, what would you estimate the cost of preferred stock financing to be for the firm?