1. The market risk premium is 5.96 percent, and the risk-free rate is 4.39 percent. If the expected return on a bond is 6.46 percent, what is its beta? (Round answer to 2 decimal places, e.g. 15.25.)

2. Fjord Luxury Liners has preferred shares outstanding that pay an annual dividend equal to $7 per year. If the current price of Fjord preferred shares is $75.44, what is the after-tax cost of preferred stock for Fjord? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)