A firm has $1 million market value and it sells preferred stock with a par value of 5100. the coupon rate on the preferred stock is 9% and the preferred stock trades at 599, what is the cost of preferred stock financing? O A 8.18% OB. 8.64% OG 7.73% OD 9.09% An auto-parts company is deciding whether to sponsor a racing team for a cost of $1 milion. The sponsorship would last for three years and is expected to increase cash flows by $570,000 per year. W the discount rate is 7.7%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? O A $715.400 OB. 5476.933 OC. 5810,787 OD. $763,090