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Jensen's Travel Agency has 11 percent preferred stock outstanding that is currently selling for $57 a share. The market rate of return is 13 percent

Jensen's Travel Agency has 11 percent preferred stock outstanding that is currently selling for $57 a share. The market rate of return is 13 percent and the firm's tax rate is 34 percent. What is Jensen's cost of preferred stock?

19.30 percent
22.81 percent
7.26 percent
16.40 percent
6.56 percent

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