Quantitative Problem: Barton Industries can issue perpetual preferred stock at a price of $57 per share. The stock would pay a constant annual dividend of $2.80 per share. If the firm's marginal tax rate is 40%, what is the company's cost of preferred stock? Round your answer to 2 decimal places. %

Quantitative Problem: 5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $2,100 face value and a 9% coupon, semiannual payment ($94.5 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? Round your answer to 2 decimal places. Do not round intermediate calculations. %