3. The cost of preferred stock Blue Panda has preferred stock that pays a dividend of $7.00 per share and sells for $100 per share. It is considering issuing new shares of preferred stock. These new shares incur an underwriting (or flotation) cost of 2.30%. How much will Blue Panda pay to the underwriter on a per-share basis? $87.93 $1.95 $2.53 $2.30 After it pays its underwriter, how much will Blue Panda receive from each share of preferred stock that it issues? $87.93 $2.53 $1.95 $97.70 $2.30 Based on this information, Blue Panda's cost of preferred stock is