Fjord Luxury Liners has preferred shares outstanding that pay an annual dividend equal to $11 per year. If the current price of Fjord preferred shares is $78.31, what is the after-tax cost of preferred stock for Fjord? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

After-tax cost of preferred stock