Firms that carry preferred stock in their capital mix want to not only distribute dividends to common stockholders but also maintain credibility in the capital markets so that they can raise additional funds in the future and avoid potential corporate raids from preferred stockholders. The CFO of Globex Corp. has decided that the company needs to raise additional capital. It can sell preferred stock with a $9 dividend per share for $100 per share; however, it will incur a flotation cost of 1.3% per share