American Water Works has an issue of preferred stock outstanding with a coupon nte of 500 percent that sells for $90 per share. If the par value is $100, what is the cost of the conparys preferred stock? If your answer is 8.60% enter 8.60 not 0.086 Question 6 Your firm is getting ready to price their initial Public Offering of cominon stock and your ipo is to estimate the offer price correctly. For the next 2 years you will pay dividends of 52 per share at the end of year one and $2.40 at the end of year 2. After year 2 , dividends will 5 till be paid but the growth nate will settie dount to 58s per year. The required return on equity is 9%