St. Joe Trucking has sold an issue of $9 cumulative preferred stock to the public at a price of $58 per share. After issuance costs, St. Joe netted $52 per share. The company has a marginal tax rate of 40 percent. Use Table II and Table IV to answer the questions below.

Calculate the after-tax cost of this preferred stock offering assuming that this stock is a perpetuity. Round your answer to two decimal places.

If the stock is callable in 10 years at $60 per share and investors expect it to be called at that time, what is the after-tax cost of this preferred stock offering? Round your answer to the nearest whole number.