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?

	35.29 percent
	11.00 percent
	32.35 percent
	10.60 percent
	7.26 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?

	35.29 percent
	11.00 percent
	32.35 percent
	10.60 percent
	7.26 percent