What is jensens cost of preferred stock

Reference no: EM13263696

Jensen's Travel Agency has 9 percent preferred stock outstanding that is currently selling for $30 a share. The market rate of return is 10 percent and the firm's tax rate is 34 percent. What is Jensen's cost of preferred stock?

30.00 percent
5.94 percent
9.18 percent
10.20 percent
33.33 percent

Reference no: EM13263696

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