Henessey Markets has 7 percent preferred stock outstanding which was originally priced at $100 per share. It is currently selling for $48 a share. The market rate of return is 14 percent and the firm's tax rate is 39 percent. What is the firm's component cost of preferred stock? (round answer to whole number with two decimal points: i.e., use 1.23 percent insteod of 0.0123 )