Suppose ABC Co.has the following financial information:

Debt:25,000 bonds outstanding with a face value of $1,000.The bonds currently trade at 91% of par and have 10 years to maturity.The coupon rate equals 3%, and the bonds make semi-annual interest payments.

Preferred stock:300,000 shares of preferred stock outstanding; currently trading for $153 per share and it pays a dividend of $6.40 per share every year.

Common stock:1,000,000 shares of common stock outstanding; currently trading for $85 per share. Beta equals 0.88.

Market and firm information:The expected return on the market is 12%, the risk free rate is 3%, tax rate is 21%

Calculate the cost of common stock. (Enter percentages as decimals and round to 4 decimals)

Calculate the cost of preferred stock. (Enter percentages as decimals and round to 4 decimals)