A company has preferred stock that can be sold for 25 SAR per share. The preferred stock pays an annual dividend of 4.5% based on a par value of 100 SAR. Flotation costs associated with the sale of preferred stock equal 2.25 SAR per share. The company's marginal tax rate is 35%. Therefore, the cost of preferred stock is ________.

		18.87%
		17.72%
		19.78%
		16.94%