1)a company's perpetual preferred stock pays a $1.31 annual dividend and currently sells for $15 per share. if the company were to sell new preferred stock it would incur a flotation cost of 5% of the issue price. what is the firms cost of preferred stock?

2) Amazon has a beta of 0.7. The risk-free rate is 1.4% and the expected return on the S&P500 is 8%.

What is Amazons cost of equity?

Now assume that the expected market risk premium risk is 8%. What is Amazons cost of equity?