Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 4%, paid annually. Today, the debt is selling at $1,070. If the firm’s tax bracket is 40%, what is its percentage after-tax cost of debt? Assume a face value of $1,000. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
After-tax cost of debt _____%
Pangbourne Whitchurch has preferred stock outstanding. The stock pays a dividend of $7 per share, and sells for $70. What is the percentage cost of the preferred stock?
Cost of preferred stock ______ %