A firm with a 40% tax rate has $5 million of preferred shares outstanding (each share has a $100 par value) that pay a dividend of 6 percent and are callable at a premium of 5 percent. Issuing and underwriting expenses of $500,000 would have to be incurred. Assume that current dividend rates have dropped to 4 percent. What would be the market price of a preferred share? To what level would the dividend rate (on comparable issues) have to drop to in order to make refinancing attractive? Assume that dividend yields have dropped to 4 percent. How many years will it take for the company to recoup the initial refinancing costs? Assume that the company chooses to call the 6% issue and refinance (with new shares) at 4%. What is the maximum number of new preferred shares (each new share has a $100 par value) the firm can issue without increasing total annual dividend payments from their current level (at 6%)