The treasurer of Riley Coal Company is asked to compute the cost of fixed income securities for her corporation. Even before making the calculations, she assumes that the after tax cost of debt is at least 3% less than that for preferred stock. Debt can be issued at a yield of 7.6%, and the corporate tax rate is 35%. Preferred stock will be priced at $55 and pay a dividend of $3.80. The flotation cost on the preferred stock is four dollars. a. Compute the after tax cost of debt. B. compute the after tax cost of preferred stock. C. Based on the fax given above is the treasurer, correct?