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Jensen's Travel Agency has 11 percent preferred stock outstanding that is currently selling for $34 a share. The market rate of return is 12 percent

Jensen's Travel Agency has 11 percent preferred stock outstanding that is currently selling for $34 a share. The market rate of return is 12 percent and the firm's tax rate is 34 percent. What is Jensen's cost of preferred stock?

7.26%

11.00%

32.35%

10.60%

35.29%

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