JJ firm issues preferred dividends at an annual rate of $4.47. Its current preferred stock price is $23.77. Assume that the equity beta for JJ is 0.77. The Yield on 10-year treasuries is 3.19%, and that the market risk premium for the year is 7%. The company's EPS expected growth is 3%. For this year, the dividends for JJ firm are the same for common and preferred stock; additionally the price for common stock is $29. What is the preferred cost of equity for JJ Firm?