Coroporate finance

1. SGS Company needs to introduce a new product to the market and need a capital of $100,000. SGS can acquire its capital from different sources. It Borrows $55,000 from the bank with an Interest rate of 12% and taxes are 40%; Issue preferred stocks for $15,000 with a floatation cost for 8% and each preferred stock price is 110$ and pays a dividend of 10$ and use the remaining needed capital from retained earnings, knowing that the common stock of XYZ is currently trading for 135$. and its earnings growth rate is 5%. If the WACC of Sos is 8.052% then how much is the difference between the dividend paid on preferred stock and the expected dividend paid of common stock (Round to the nearest number) $10 $7 $5 O $ None of the above