Firms that carry preferred stock in their capital mix want to not only distribute dividends to common stockholders b 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. Consider the case of Peaceful Book Binding Company Peaceful Book Binding Company has preferred stock that pays a dividend of $8 per share and sells for $100 per share. It is considering issuing new shares of preferred stock. These new shares incur an underwriting (or fotation cost of 2.5%. Based on this information, what is Peaceful How much will Peaceful Book Binding Company pay per share to the underwriter? Book Binding Company's cost of preferred stock capital? O $2.50 $97.50 O 8.21% O $87.75 O 6.57% O 7.39% o 2.75 9.03%