How much will Peaceful Book Binding Company pay per share to the underwriter?

$$87\mathrm{.}57$ per share

$$2\mathrm{.}70$ per share

$$97\mathrm{.}30$ per share

$$2\mathrm{.}97$ per share

Based on this information, what is Peaceful Book Binding Company's cost of preferred stock capital?

$7\mathrm{.}40\%$

$8\mathrm{.}22\%$

$9\mathrm{.}04\%$

$6\mathrm{.}99\%$