3. The cost of preferred stock Happy Giraffe 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 2.50%. How much will Happy Giraffe pay to the underwriter on a per-share basis? O $87.75 O $97.50 O $2.50 O $2.13 After it pays its underwriter, how much will Happy Giraffe receive from each share of preferred stock that it issues? O $97.50 O $87.75 O $2.50 O $2.13 O $2.75 Based on this information, Happy Giraffe's cost of preferred stock is