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 belleve that investors will be willing to pay $84.00 per share and that fotation costs will be equal to $11.40 per share. Given this information. determine the difference between the investor's required rate of return, and the firm's cost of preferred stock. 1.3989 1.683% 2.541% 2.224% 1.96396