1. a. Before and after-tax cost of debt For the following $1,000-par-value bond paying semi-annual interest payments, calculate the before- and after-tax cost of debt. Use the 21% corporate tax rate.

Issuer Name	Coupon Rate	Years to Maturity	Price
General Motors Co.	2.30%	32	$992.45

The before-tax cost of debt for

General Motors Co. is enter your response here%. (Round to two decimal places.)

b.. Cost of preferred stockTaylor Systems has just issued preferred stock. The stock has a 8% annual dividend and a $100 par value and was sold at $106.00 per share. In addition, flotation costs of $5.00 per share were paid. Calculate the cost of the preferred stock.

The cost of the preferred stock is enter your response here%.

(Round to two decimal places.)