The preferred stock of Texas Southern Power Company sells for $44 and pays $4 in dividends. The net price of the security after issuance costs is $37.84. What is the cost of capital for the preferred stock?

The cost of capital for the preferred stock is ______%

Carraway Seed Company is issuing a $1,000 par value bond that pays 8 percent annual interest and matures in 14 years. Investors are willing to pay $950 for the bond. Flotation costs will be 9 percent of market value. The company is in a 25 percent tax bracket. What will be the firm's after-tax cost of debt on the bond?

The firm's after-tax cost of debt on the bond will be ________%