Mavis taylor corporation

P9- 7 Cost of preferred stock Mavis Taylor Corporation has just issued preferred stock. The stock has a 6% annual dividend and a $100 par value, and was sold at $93.5 per share. Flotation costs were an additional $3 per share. a. Calculate the cost of the preferred stock. b. If the firm sells the preferred stock with a 10% annual dividend and net $93.00 after otation costs, what is its cost