(Cost of preferred stock) The proferred tlock of Gator industries sells for $34.63 and pays $2.75 per year in dividends. What is the cost of preferred stock finanoing? I Gator wece to isse. 534,000 more preferred shares just like the ones it currentyy has outstanding, it could sell them for $34,63 a share but weuld haur thotation costs of $3.03 por share. Whet are the totation costs for issuing the prefecred shares and how should this cost be incorporated into the NPV of the project being financed? The firm's cost of preferred stock financing is 4. (Round to two decimal places.) The flotation costs adjusted initial outay for issuing the prelerred shares are $ (Round to the nearest dollar.) How should this cost be incorporated into the NPV of the peoject being fnanced? (Selest the beat choice telow.) A. Wo can acoount foc fotation costs when calculating NPV by adding them to the initial preject ousay. B. We can account for flotation costs when caleulating NPV by subtractieg them from the initial froject ouflay. C. We can account for flotation costs when calcuiating NPV by issuing mere shares than initially anticpeded D. We can acoount for flotation costs when calculating NPV by adjusting the pecjects discount rale