JJ firm issues preferred dividends at an annual rate of $4.89. Its current preferred stock price is $23.28. Assume that the equity beta for JJ is 0.85. The Yield on 10-year treasuries is 2.93%, and that the market risk premium for the year is 7%. The company's EPS expected growth is 4%. For this year, the dividends for JJ firm are the same for common and preferred stock; additionally the price for common stock is $30. What is the preferred cost of equity for JJ Firm?