Consider the case of Blue Panda Ice Cream Company: Blue Panda has preferred stock that pays a dividend of $5.00 per share and sells for $100 per share. It is considering issuing new shares of preferred stock. These new shares incur an underwriting (or flotation) cost of 2.50%. How much will Blue Panda pay to the underwriter on a per-share basis? $87.75 $2.13 $2.75 $2.50 After it pays its underwriter, how much will Blue Panda receive from each share of preferred stock that it issues? $2.13 $87.75 4.36% $2.50 4.62% $97.50 5.13% $2.75 4.10% Based on this information, Blue Panda's cost of preferred stock is