Firms that carry preferred stock in their capital mox want to not only distrbute drvidends to common stockholders but also maintain creditalify in the. capital matkets so that they can raise additional funds in the future and avoid potential corporate raids from preferred stocktiolders. Consider the case of Cold Duck Brewing Company Cold Duck Brewing Company has preferred stock that pays a dividend of $9 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 2.5%. How much will Cold Duck Brewing Company pay per share to the underwriter? 587.75 per share $97.50 per share $2.50 per share $2.75 per share Based on this anformation, what is Cold Duck Brewing Compeny's cost of preferred stock capital? 7.3896 9.23% How much will Cold Duck Brewing Company pay per share to the underwriter? $87.75 per share $97.50 per share \$2.50 per share $2.75 per share Based en this information, what is Cold Duck Brewing Company's cost of preferred stock capotal? 7.38% 9.23% 7.65% 8.31% Companies make tax adjustments when calculating then (after-tax) cost of preferred stock because preferred dividends tax deductible, so the company bears their full cost. $87.75 per share $97.50 per share $2.50 per share $2.75 per share. Based on this information, what is Cold Duck Brewing Company's cost of preferred stock capital? 7.38% 9.2398 Companies make tax adjustments when calculating the (after-tax) cost of preferred stock becmuse preferred dividends tax deductible, so the company bears their full cost. How much will Cold Duck Brewing Company pary per share to the underwiter? {87,75 per share $97.50 per share $2.50 per share $2.75 per share Based on this information, what is Cold Duck Brewing Company's cost of preferred stock capital? 7.36% 9.2396 7.85% make tax adjustments when calculating the (after-tax) cost of preferred stock because prefemed dividends tax deductible, so the company bears their full cost