Olympic Sports has two issues of debt outstanding. One is a 6% coupon bond with a face value of $23 million, a maturity of 10 years, and a yield to maturity of 7%. The coupons are paid annually. The other bond issue has a maturity of 15 years, with coupons also paid annually, and a coupon rate of 7%. The face value of the issue is $28 million, and the issue sells for 95% of par value. The firm's tax rate is 40%.

a.What is the before-tax cost of debt for Olympic?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b.What is Olympic's after-tax cost of debt?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Olympic sports also has preferred stock outstanding. The stock pays a dividend of $6 per share, and sells for $40. The corporate tax rate is 35%. What is the percentage cost of the preferred stock?