Cost of preferred stock: Kresler Autos has preferred shares outstanding that pay annual dividends of $9 and the current price of the shares is $81. What is the after-tax cost of new preferred shares for Kresler if the flotation (issuance) costs for a new issue of preferred are 5 percent?

(Omit the percent sign in your answer. Carry out all calculations to four decimal places and round your final answer to two decimal places, for example 7.80%.)

After-tax cost of preferred shares %.

Cost of common stock: Whitewall Tire Co. just paid a $1.35 dividend on its common shares. If Whitewall is expected to increase its annual dividend by 3.90 percent per year into the foreseeable future and the current price of Whitewall's common shares is $13.32, then what is the cost of common equity for Whitewall?

(Omit the percent sign in your answer. Carry out all calculations to four decimal places and round your final answer to two decimal places, for example 7.80%.)