Holdup Bank has an issue of preferred stock with a $0.62 stated dividend that just sold for $39.87 per share. What is the bank's cost of preferred stock?

Enter the answer with 4 decimals (e.g. 0.1234).

Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 8 years to maturity twith a current price of $1042. The issue makes semiannual payments and has coupon rate of 8 percent.If the tax rate is 0.3, what is thepretaxcost of debt? Enter the answer with 4 decimals (e.g. 0.0123)