Assume that a firm can issue preferred stock that has a $70 par value and pays a 15.0% annual dividend each year. The firm's investment bankers believe that investors will be willing to pay $84.00 per share and that flotation costs will be equal to $12.69 per share. Given this information, determine the difference between the investor's required rate of return, and the firm's cost of preferred stock. 2.224% 1.683% 1.963% 2.541% 1.398%