Joe Trucking has sold an issue of $6 cumulative preferred stock to the public at a price of $60 per share. After issuance costs, St. Joe netted $57...

St. Joe Trucking has sold an issue of $6 cumulative preferred stock to the public at aprice of $60 per share. After issuance costs, St. Joe netted $57 per share. The companyhas a marginal tax rate of 40 percent.a. Calculate the after-tax cost of this preferred stock offering assuming that thisstock is a perpetuity.•b. if the stock is callable in 5 years at $66 per share and investors expect it to becalled at that time, what is the after-tax cost of this preferred stock offering?(Compute to the nearest whole percent.)

St. Joe Trucking has sold an issue of $6 cumulative preferred stock to the public at aprice of $60 per share. After issuance costs, St. Joe netted $57 per share. The companyhas a marginal tax...